Stocks notched broad gains Monday on Wall Street as investors looked ahead to Election Day and the potential for a turbulent stretch for markets.

The S&P 500 climbed 1.2%, recouping some of its losses from a sharp sell-off last week, as more companies reported stronger profits for the summer than Wall Street feared and reports on manufacturing came in better than expected. Health care, industrial and financial companies drove much of the broad rally, which followed gains for European and Asian stocks following their own better-than-­expected economic data.

Caution, though, was continuing to hang over markets as the pandemic raises worries that customers will stay away from businesses and pushes more European governments to bring back restrictions. Uncertainty about today’s U.S. elections is also weighing on markets, and Treasury yields were mixed.

“People are probably more than willing to hold off to see what happens tomorrow night,” said David Trainer, CEO of investment research firm New Constructs.

The S&P 500 rose 40.28, to 3,310.24. The Dow Jones Industrial Average gained 423.45 points, or 1.6%, to 26,925.05. The Nasdaq composite picked up 46.02 points, or 0.4%, to 10,957.61. The index had been down 0.7%.

Small-company stocks fared better than the broader market. The Russell 2000 small-caps index rose 30.11 points, or 2%, to 1,568.59.

Corporate profits, meanwhile, are weaker than year-ago levels but continue to be better than Wall Street had feared.

Nielsen Holdings rose 3.8% and Clorox gained 4.2% after each of the companies reported better results than analysts expected. Companies in the S&P 500 are now on track to a decline of slightly less than 10% for the summer from a year earlier. That’s not as bad as the nearly 21% drop analysts were expecting at the start of October, according to FactSet.