The stock market racked up its best week since April despite the turmoil of an election that's still unresolved.
While the major stock indexes mostly finished a bit lower Friday, the drop wasn't enough to offset four days of strong gains. The S&P 500 surged 7.3% for the week, while the Dow Jones Industrial Average rose about 1,800 points, an increase of 6.9%.
While former Vice President Joseph Biden is leading in the presidential race, the election fell short of the landslide Democrats had hoped for as prospects of retaking the Senate faded. Democrats retained control of the House of Representatives.
The potentially split decision by the electorate could mean at least two more years of divided government, a prospect that investors would welcome given that it could make it more difficult for Democrats to pass their economic agenda.
Democrats have campaigned on issues such as increased regulation or higher taxes for the wealthy, measures that are typically unpopular in Wall Street.
"If Republicans do maintain control of the Senate, the likelihood of major tax hikes decreases at least until after the 2022 midterm election," said Jim Baird, chief investment officer at Plante Moran Financial Advisors.