NEW YORK—Stocks rose Monday on the eve of Election Day as Wall Street looked ahead to the benefits of a possibly split government in Washington, though trading is likely to stay bumpy in a week full of events that could shake the market.
The S&P 500 rose 1 percent, while the Dow Jones Industrial Average gained 1.3 percent and the Nasdaq composite added 0.9 percent.
Analysts say many investors seem to be making bets that Republicans will take control of at least one house of Congress.
A better-than-expected performance by Democrats in the midterm elections could hurt stocks. Investors may fear emboldened Democrats in such a scenario would push for increased spending. That in turn could be a signal that the Federal Reserve would have to hike interest rates even higher to get inflation under control….