The stock market closed more than 2% higher Wednesday after the midterm election brought no major surprises and helped remove a cloud of uncertainty over Wall Street.
XThe Nasdaq composite led the market, surging 2.6% and rising back above the 200-day moving average. The S&P 500 also reclaimed the 200-day line, up 2.1% on the day.
The Dow Jones industrial average, which has corrected less than the other two indexes, added 2.1%, or 545 points, and closed back above the 50-day line for the first time since Oct. 9. The Russell 2000 climbed 1.5% at the closing bell.
Volume expanded sharply, adding weight to Wednesday's rally. Advancers led decliners by a 7-2 ratio on the NYSE and by more than 2-to-1 on the Nasdaq.
Dow component UnitedHealth Group (UNH) jumped more than 4% to a new high in a strong day for the health care sector. Democratic Party gains in the House of Representatives are likely to delay or prevent any further weakening of ObamaCare by Republicans. Rival Humana (HUM) broke out past a 341.40 ideal buy point after quarterly results beat expectations.
Health Care Sector Rocks After Midterm Election
Indeed, health care was one of the day's top sectors. Besides managed care providers, hospitals, medical equipment, medical research services, health care software and outpatient care providers were among the top 20 industry groups in terms of daily performance.
Software, internet, solar energy and networking groups also performed impressively and were much of the reason why the tech-heavy Nasdaq led.
Also important was the numerous breakouts among top-rated stocks. Tableau Software (DATA), Mellanox (MLNX) and Horizon Pharma (HZNP) were a few of those breakouts. Tableau and Horizon had just reported earnings.
Amazon.com (AMZN) was another key contributor. The stock jumped more than 6% and got itself back above the 200-day moving average. That's a significant step if Amazon.com is to continue its recovery.
Microsoft (MSFT), another technology bellwether, closed back above the 50-day line for the first time since Oct. 9.
The stock market isn't entirely out of the woods. On Thursday, the Federal Reserve will issue its latest policy on interest rates. While few expect a rate hike, investors are keen on details on what the Fed's next steps will be.
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