Dow climbs 560 points as likelihood of divided government extends healthcare and tech rallies

• US stocks rallied further on Thursday as investors turned increasingly bullish toward the prospect of a divided government.
• Healthcare and tech stocks drove indexes higher. A split government would be unlikely to further regulate and tax the industries as Democrats had hoped.
• New US weekly jobless claims came in at 751,000 for the week that ended on Saturday. The reading was above economists' expectations but still a decline from the prior week's revised total.
• Oil tumbled before paring losses. West Texas Intermediate crude fell as much as 2.3%, to $38.27 per barrel, before rebounding.
• Watch major indexes update live here.

US equities continued to climb on Thursday as the dwindling prospects of a Democratic sweep lifted sectors prone to regulation.

Tech and healthcare stocks boosted indexes as investors increased bets on the industries. The chances of a blue-wave election outcome had fueled fears of increased industry scrutiny and tax hikes. But with Republicans poised to hold control of the Senate, Wall Street is turning around on the growth favorites.

Risk markets continued to thrive as the outcome of the US presidential election remained uncertain. Former Vice President Joe Biden emerged victorious in Michigan and Wisconsin on Wednesday, while the race tightened in Arizona and Nevada.

President Donald Trump's leads in Georgia and Pennsylvania narrowed overnight as both states continued to count mail-in ballots.

Here's where US indexes stood as of 1:40 p.m. ET on Thursday:

• S&P 500: 3,518.27, up 2.2%
• Dow Jones industrial average: 28,411.26, up 2% (564 points)
• Nasdaq composite: 11,874.62, up 2.5%

Read more: An advisor at the world's largest wealth manager breaks down why a Biden win and a split congress is the best long-term outcome for markets — and says investors should look to these 4 sub-sectors for ongoing gains

The Thursday surge mimicked Wednesday's upswing. The Dow gained 368 points and the Nasdaq leaped to its highest level since April as investors turned more bullish toward the prospect of a divided government. While it would be harder for a split Congress to pass a massive stimulus package, the election results so far suggested Trump's corporate tax cuts and less strict regulations would stay in effect.

US weekly jobless claims ticked lower once again while remaining above pre-pandemic levels. New claims for unemployment benefits totaled 751,000 for the week that ended Saturday, the Labor Department said. That came in above the median economist estimate of 735,000 but still marked a decline from the previous week's revised total.

Continuing claims, which tracks the number of Americans receiving unemployment benefits, fell to roughly 7.3 million for the week that ended on October 24. The reading was slightly above economists' expectations.

Read more: 3 veteran investors share where to invest now to build resilient, long-term portfolios that win even if the elections produce a gridlocked government

Wall Street will be looking to the Federal Reserve on Thursday afternoon for any hints at future easing policy. Federal Open Market Committee officials are expected to keep interest rates near zero and maintain the Fed's pace of asset purchases. The stifled chances of an outsized stimulus bill in early 2021 places more focus on the central bank to drive the US economic recovery.

General Motors leaped after strong truck and SUV sales in North America and China led its third-quarter profit to outperform estimates. Earnings per share of $2.83 nearly doubled Wall Street's expectation.

Aurora Cannabis rallied as Biden's strengthening margins lifted hopes for federal decriminalization of marijuana. Other cannabis stocks gained in early trading.

Bitcoin closed in on $15,000 after breaching the $14,000 resistance level on Wednesday.

Read more: Iconiq Capital, which counts some of the world's most influential families as clients, broke down the investment implications of the US election. Here are the highlights of its 23-page presentation.

Spot gold jumped as much as 1.6%, to $1,932.96 per ounce, at intraday highs. The precious metal's climb placed it at its highest point since mid-October and pushed prices above their 50-day moving average.

The US dollar continued to fall against major currency peers. Treasury yields were mostly unchanged.

Oil prices tumbled before paring some losses. West Texas Intermediate crude fell as much as 2.3%, to $38.27 per barrel, before rebounding. Brent crude, oil's international benchmark, sank 2.2%, to $40.33 per barrel, at intraday lows.

Now read more markets coverage from Markets Insider and Business Insider:

Morgan Stanley breaks down why defense stocks are cheap must-buys after the election regardless of who wins — including the top pick it expects to rally 62%

Postelection stock rally is an endorsement of a split US government, Evercore co-CEO says

'Gridlock no matter who wins': Here's what 5 Wall Street experts are saying about the tight US presidential race