US stocks rose modestly on Tuesday as Americans voted in the midterm elections and ahead of the release of crucial inflation data later this week.
Wall Street’s benchmark S&P 500 added 0.6 per cent and the tech-heavy Nasdaq Composite rose 0.4 per cent, having erased bigger gains earlier in the day. The moves come as voters head to the polls, with the Republican party forecast to gain control of one or both chambers of Congress.
While a split government typically results in legislative gridlock, Republicans have suggested they may use the passage of the government borrowing limit — a delay that would force the US to default on its debt — as leverage to push through spending cuts.
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