U.S. stocks advanced, led by technology and retailer shares after a reading on consumer confidence rose more than forecast, while markets also judged Hillary Clinton the winner of the presidential debate.
The S&P 500 Index added 0.3 percent to 2,153.10 at 10:12 a.m. in New York. Futures had rallied as much as 0.7 percent during last night’s debate, though erased that advance as European stocks reversed gains with Deutsche Bank AG near a record low. The Dow Jones Industrial Average added 73 points, or 0.4 percent, to 18,167.83.
“Hillary came off better than Trump in the debate, but at the same time the consensus was that she would, and the consensus is that she wins these elections,” Jasper Lawler, an analyst at CMC Markets in London. “Had Trump been stronger, then maybe we would have seen a stronger downside reaction in the market. Markets are still not fully discounting a Trump win, and this could shock markets.”
A report today showed consumer confidence rose in September to the highest level since before the last recession, according to a report from the New York-based Conference Board on Tuesday. The researcher’s confidence index increased to 104.1 from 101.8. Economists surveyed by Bloomberg projected a reading of 99, based on the median estimate.
The market saw Clinton as the debate winner, with futures erasing a decline of as much as 0.3 percent. A win for the Democrat is what Wall Street expects and would create less headline risk for markets, while a Trump win would trigger a 5 percent selloff, Citigroup Inc. wrote in a note last month.
The S&P 500 has lost 0.8 percent in September, heading for its biggest monthly decline since January. While it gained last week as the Federal Reserve kept its policy unchanged, it’s down 2 percent since an all-time high reached Aug. 15.
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