Shares on Wall Street rallied on the eve of the US presidential election, as Democrat nominee Hillary Clinton's prospects brightened after the FBI said it would not press criminal charges against her over the use of a private email server.
US stocks on Monday were set for their biggest one-day percentage gain since March 1, while a volatility measure was set for its biggest drop since late June.
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US stocks rally on expected Clinton win
Stocks surged more than two percent after the FBI said it would not press charges against Democratic nominee Hillary Clinton, who is leading Donald Trump in at least five polls.
The IShares MSCI Mexico ETF, known of late as the "Trump ETF," soared 5.3 per cent and was on track for its best day in more than five years. The ETF is viewed as a barometer for expectations that Republican Donald Trump could win the election since his policies are considered negative for Mexico.
The FBI said on Sunday it stood by its July finding that Clinton was not guilty of criminal wrongdoing, after announcing on October 28 it was reviewing additional emails relating to her use of a private server while secretary of state.
While polls last week showed Trump had been closing the gap, at least five major polls on Monday showed Clinton still had the lead in the race for the White House.
Wall Street closed lower for nine days in a row through Friday, its longest losing streak in more than 35 years.
Investors have tended to see Clinton as a more status quo candidate. On the other hand, Trump's stance on foreign policy, trade and immigration has unnerved the market.
"I don't see another 5 per cent bump on a Clinton win, but I could see a 5 to 7 per cent pullback on a Trump win," said Jeff Carbone, co-founder of Cornerstone Financial Partners in Charlotte, North Carolina.
At 6am Sydney time, the Dow Jones industrial average was up 1.97 per cent at 18,241.18 points and the S&P; 500 gained 2.12 per cent to 2,129.33.
The Nasdaq Composite added 2.36 per cent to 5,165.46.
The CBOE Volatility index, dubbed Wall Street's "fear gauge," tumbled 17 per cent, on pace for its biggest one-day fall since June 28, just after Britain voted to leave the European Union.
The financials' 2.5 per cent rise led the gainers among the 11 S&P; sectors. Investors expect a Clinton victory to not hinder a potential US interest rate hike next month.
Biogen jumped 6.18 per cent after the drugmaker and Ionis announced positive interim trial data. Ionis shares soared 18.54 per cent.
Advancing issues outnumbered declining ones on the NYSE by a 6.07-to-1 ratio; on Nasdaq, a 4.82-to-1 ratio favoured advancers.
The S&P; 500 posted 12 new 52-week highs and no new lows; the Nasdaq Composite recorded 61 new highs and 58 new lows.
Reuters