A growing number of Wall Street strategists predict that a decision in the US presidential election will pave the way for a rally in stocks towards the end of 2024, building on a 21% gain this year for the S&P 500 Index.

Morgan Stanleys Mike Wilson and JPMorgan Chase & Co.’s Dubravko Lakos-Bujas are among market watchers who said this week that the stock benchmark is poised to move higher once a winner is declared. Meanwhile, Jefferies LLC strategists say that stock weakness in the week before the vote has generally boded well for performance in the following month, making last week’s slump a potentially bullish signal.