US shares surged today as investors looked forward to putting the uncertainty of the presidential election behind them.

The Dow Jones industrial average jumped 305.45 points to close at 9,625.28 despite a sharp fall in orders for US-made factory goods for the second straight month in September.

Adding to evidence that the manufacturing sector is slowing at a rapid pace, the US Commerce Department reported that factory orders fell 2.5 per cent in September, after falling a revised 4.3 per cent in August.

Yesterday, it emerged that manufacturing in the US shrank at its fastest pace in 26 years last month as declining business and consumer confidence prompted companies to cut orders for new goods.

The Institute for Supply Management (ISM) reported that its index of national factory activity fell from 43.5 in September to 38.9 in October — the lowest level since September 1982 and below the consensus analyst forecast of 41. Any number below 50 signals contraction.

However, today's markets in the US were also boosted by a stronger-than-expected profits announcement from MasterCard, which reassured investors that the financial crisis may have bottomed out.

Shares in MasterCard rose by $26.35 or 18.3 per cent to close at $170.2 in New York.

Chloe Magnier, an equity strategist at Saxo Banque in Paris, said: "The worst is behind us in terms of the financial crisis," before adding: "Obama is the candidate markets are expecting. He represents a big change for the US."

Financial shares, in particular, also benefited as money market rates declined. Citigroup rose by 4.9 per cent to $14.68 and JPMorgan by 3.54 per cent, to $42.17.

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