Markets rally in relief after French vote

Wall St. likes what it sees as Dow surges, Nasdaq hits record

The Nasdaq composite closed at a new high and the Dow Jones industrial average climbed more than 200 points after the first round of the French presidential election sent a pro-business, eurofriendly candidate into next month’s final contest.

The runoff election May 7 to determine France’s next president will pit centrist and market-friendly candidate Emmanuel Macron vs. the far-right’s Marine Le Pen, who is anti-euro and against globalization.

Investors around the world had feared a worst-case outcome this weekend: a final vote between Le Pen and far-left candidate Jean-Luc Melenchon, which would have meant a candidate in favor of France breaking from the European Union would win. After that did not happen, investors moved back into stocks and pared back on assets such as gold Monday.

The voting results sparked a relief rally in stocks that began in Asia, gained power in Europe and spread to Wall Street.

On Wall Street, the Nasdaq composite gained 73.30 points, or 1.2%, to close at 5983.82 — a record high. The Dow closed up 216.13 points, or 1.1% higher, at 20,763.89. The Standard & Poor’s 500 stock index rallied 25.46 points, or 1.1%, to 2374.15.

With political risk receding in Europe and the final French vote two weeks away, Wall Street will pivot back to market drivers back home, analysts say.

President Trump’s administration could unveil its tax-reform proposal as early as Wednesday after delays following the Republicans’ failure in late March to vote on a bill to replace Obamacare. The U.S. government, meanwhile, is at risk of running out of money and could shut down later this week if lawmakers can’t agree on a funding bill.