US stocks rose in a broad-based rally that included small-cap and blue-chip stocks ahead of the midterm elections and inflation data later this week. The dollar fell alongside treasuries.
All but three of the 11 industry groups advanced as the S&P 500 closed near session highs. The tech-heavy Nasdaq 100 also attracted bids, while the Dow Jones Industrial Average outperformed, rising as much as 1.5%, with health-care stocks leading the way. In afternoon trading, the Russell 2000 rallied, reversing losses.
For the time being, optimism outweighs concerns about the Federal Reserve's steadfast campaign against price increases, signs of stress in US corporate performance, and China's announcement that it will "unwaveringly" adhere to current COVID zero policy.