A growing number of Wall Street strategists are predicting that a decision in the US presidential election will set the stage for stocks to rally into the end of 2024, building on a 21% gain this year for the S&P 500 Index.

Traders are bracing for a bout of volatility around the U.S. election, one that quickly subsides. Futures contracts tied to the Cboe Volatility Index, or VIX, that expire this month are trading above those expiring in December or January,

On Tuesday, U.S. stocks advanced as voters headed to the polls and fresh data showed the economy remains healthy. The S&P 500 rose 1.2% to 5,782.76 and the Dow industrials climbed 1% to 42,221.88. The Nasdaq composite gained 1.4% to 18,439.17.

Intel fell 2.9%, and chemical producer Dow sank 2.1% in their first trading since getting notified that they’ll no longer be included in the Dow. Warren Buffett’s Berkshire Hathaway fell 2.2% and was one of the heaviest weights on the market after reporting a drop in operating profit for the latest quarter.

Wall Street has a poor track record when it comes to forecasting the future performance of the stock market. Since 2020, there has been a 17-percentage-point discrepancy between analysts' median year-end forecast for the S&P 500 and where the index actually finished each year, according to Goldman Sachs.