Stocks have gone up in anticipation of the midterm elections, reports CNBC. The Dow Jones Industrial Average increased by 426 points or 1.31 percent on Monday, while the S&P 500 went up by 0.88 percent, and the Nasdaq Composite went up by 0.78 percent.
These increases come just a week after the stocks dropped due to Federal Reserve's 0.75 percent interest rate hike. Investors are betting on a Republican victory in at least one of the congressional houses, an outcome that polls seem to also suggest. A divided government usually leads to political gridlock, "which the market usually loves," writes CNN Business.
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