Stocks rallied higher on Tuesday as Wall Street awaits the results of the U.S. presidential election. The Dow Jones Industrial Average jumped over 400 points, while the S&P 500 Index and Nasdaq Composite rose about 1.2% and 1.4%, respectively.

Here's how the market settled on Tuesday:

S&P 500 Index (SPY  ): +1.23% or +70.07 points to 5,782.76

Dow Jones Industrial Average (DIA  ): +1.02% or +427.28 points to 42,221.88

Nasdaq Composite Index (QQQ  ): +1.43% or +259.19 points to 18,439.17

U.S. Election Watch:

Bank of America analyst Craig Siegenthaler said Tuesday that Wall Street is expected to react favorably to a former President Donald Trump election win, with online brokers like Robinhood (HOOD  ) and Schwab (SCHW  ) benefitting from Republican party sweep scenarios. Meanwhile, asset managers like BlackRock (BLK  ) could benefit from a Vice President Kamala Harris win in the short-term.

Separately, Siegenthaler believes Trump's policy plans to issue broad tariffs on imported goods and heavily restrict immigration could lead to higher inflation and lower real GDP in the long-term.

"We would also expect a larger fiscal deficit under Trump given his plans to cut taxes, albeit the deficit would also expand under a Harris administration. Tariffs and restricting immigration should mute the positive effects of lower taxes/regulations on our coverage," Siegenthaler wrote in a note to clients.

UBS Global Chief Investment Officer of Americas Solita Marcelli said Tuesday that investors should trade U.S. election-related market volatility to add better long-term positions to their portfolios.

"We believe that U.S. equities are attractive and should be supported by benign growth, lower rates, and structural support from AI, regardless of the election result," Marcelli wrote in a note. "We expect these market drivers to remain in place regardless of who wins in the U.S. election."

The firm did not change its 2025 S&P 500 target of 6,600, representing about 15% upside, despite forecasts for near-term volatility.

On the Earnings Front:

Palantir Technologies (PLTR  ) shares jumped higher Tuesday after the data analytic software giant reported strong third-quarter earnings and issued better-than-expected forward guidance. The company expects fourth-quarter revenue between $767 million to $771 million, and targeting more than $687 million in U.S. commercial revenue for the year, about a quarter of its annual revenue.

"Palantir is among a handful of infrastructure software companies that have started to meaningfully monetize generative AI, where its competitive positioning benefits from longtime investment and deep expertise in complex data integration, and particularly its reputation for data security built into its ontology," analysts at Deutsche Bank wrote in a Tuesday note.

Yum! Brands (YUM  ) reported disappointing third-quarter earnings on Tuesday as same-store sales at its KFC and Pizza Hut restaurants slumped.

"The complex consumer environment that exists in many markets around the globe has contributed to pronounced regional sales variations, which has caused our system-sales growth to fall short of our long-term algorithm this year," CEO David Gibbs told analysts during the company's earnings call.

Restaurant Brands International (QSR  ) also posted weaker-than-expected third-quarter earnings on Tuesday as its domestic same-store sales growth for all four of its restaurant chains failed to meet estimates. The company also trimmed its full-year outlook for sales growth to now come between 5% to 5.5%, down from its prior range of 5.5% to 6%.

Nintendo (NTDOY  ) slashed its fiscal year Switch sales forecast on Tuesday as its net profit dropped over 69% in its fiscal second-quarter as demand for its flagside console wanes. Switch sales totaled 4.72 million units for the six months ended Sept. 30, compared with 6.84 million units for the same period last year.

The Japanese gaming giant now expects to sell 12.5 million Switch units, compared to its previous forecast of 13.5 million units. Nintendo also trimmed its fiscal full year sales and operating profit outlooks, now expecting sales of 1.28 trillion yen (versus prior forecast of 1.35 trillion yen) and 360 billion yen in operating profit (compared to 400 billion yen previously).

In the News:

Boeing (BA  ) machinists voted 58% in favor of a new contract on Monday, ending the seven-week strike that halted most of the aerospace manufacturer's production. The new labor deal includes 38% wage increase over four years, a signing bonus of up to $12,000 or a combination of a $7,000 bonus and $5,000 401(k) deposit, and increases to 401(k) contributions.

"In every negotiation and strike, there is a point where we have extracted everything that we can in bargaining and by withholding our labor," said International Association of Machinists and Aerospace Workers District 751 President Jon Holden said in a statement on Monday. "We are at that point now and risk a regressive or lesser offer in the future."

Amazon (AMZN  ) announced Tuesday the U.S. Federal Aviation Administration (FAA) has given the company permission to fly its new delivery drone, the MK30, over longer distances and beyond the visual line of sight of pilots. Matt McCardle, head of Global Regulatory Affairs and Strategy for Prime Air, said the company is already starting to make drone deliveries near Phoenix, Arizona on Tuesday.

For Wednesday:

Market participants will react to the early results of the U.S. presidential election on Wednesday, alongside earnings reports from companies including Super Micro Computer (SMCI  ), Novo Nordisk (NVO  ) and CVS Health (CVS  ).