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Stocks jolted higher Monday after last week’s big selloff ahead of an election that could resolve a monthslong deadlock in Congress over a new relief package for struggling Americans and the broader economy.

The Dow Jones industrial average rose 423.45 points, or 1.6%, to 26,925.05. The S&P 500 index climbed 40.28 points to 3,310.24.

“The truth is we are day closer to ending this highly contested election and likely a day closer to a fiscal stimulus package,” say Ryan Detrick, chief market strategist for LPL Financial.

The S&P 500 tumbled 5.6% last week, its worst weekly performance in seven months, as the U.S. added more than 500,000 coronavirus cases in a week, 20 states set case records and some states and cities toughened restrictions on businesses to contain the outbreak.

Meanwhile, hopes evaporated for a pre-election deal to provide about $2 trillion in aid to unemployed Americans and struggling businesses, among others.

But Democratic presidential nominee Joe Biden, who has a substantial lead in polls, has favored a robust relief package, and his potential victory, along with a new Congress, raise the prospect for a stimulus agreement by early next year, if not sooner.

Biden’s consistent lead, particularly this close to the vote, also reduce the odds of a drawn-out, contested election that prolongs uncertainty for investors, says Jason Ware, chief investment officer for Albion Financial Group.

“It may be a bit of a bumpy ride but not a contested election,” Ware says. 

Investors also generally have ignored a third-quarter earnings season that has outperformed estimates, Detrick says.

“Earnings were expected to be down 20% in the third quarter, but are now expected to be down only 20%,” Detrick says. “That is quite the beat.”

“Some bottom fishers came out today” to scoop up stocks at bargain prices, he says.

This article originally appeared on USA TODAY: Stock market: Dow rises 400 points after last week’s brutal selloff