Dow closes up more than 400 points on eve of Election Day

Stocks notched major gains Monday, rallying on the eve of Election Day after suffering their worst week of losses since March.

The Dow Jones Industrial Average closed with a gain of 423 points Monday, rising 1.6 percent. The Nasdaq composite rose more than 0.4 percent, and the S&P 500 rose 1.2 percent.

The market’s strong open, one day before the elections, comes after stocks suffered their steepest five-day slide since the crash in March. The Dow ended October with a 4.6 percent loss, while the S&P fell 2.8 percent and the Nasdaq fell 2.3 percent last month, according to CNBC.

A combination of rising record coronavirus cases in the U.S., escalating lockdowns in Europe and fears about a lack of bipartisan stimulus deal before the end of the year upended the market after months of resilience.

Monday’s rally begins what could be another turbulent week for financial markets with the results of the election, a Federal Reserve meeting and the release of the October jobs report all holding the potential to shake up Wall Street.

While Wall Street veterans say that the market won’t be drastically affected by the results of the presidential election, prolonged uncertainty over the results or widespread unrest could rattle investors and weigh on stocks. Investors will also be closely watching Fed Chairman Jerome Powell’s Thursday press conference for any changes in the central bank’s outlook for the economy.

Updated 4:16 p.m.