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US STOCKS-S&P 500 futures surge as Trump leads in Florida

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)

* S&P futures last up in volatile trade

* Investors want decisive result and path to stimulus (Updates with market moves after the bell)

Nov 3 (Reuters) - U.S. stock futures jumped late on Tuesday as President Donald Trump narrowly led Democratic rival Joe Biden in the vital swing state of Florida, with investors hoping for a quick resolution that clears the way for fiscal stimulus to help the coronavirus- stricken economy.

S&P emini futures were last up 1.9%, extending a rally during the official trading session in which the S&P 500 delivered its strongest one-day gain in almost a month.

On betting website Smarkets, odds reflected a 74% chance of Trump winning, up from 33% earlier in the day.

Investors for months have said they favor a definitive, fast resolution to the election, rather than a drawn out process that many have feared. Quickly settling the election would clear the way for a deal on a stimulus package to help the damaged U.S. economy.

Early results also suggested the Democrats were less likely than previously expected to take the Senate from Republicans in a so-called blue wave.

“The best case is going to be a gridlock either for a Biden or Trump presidency. I think the market is repricing its assumptions,” said Thomas Hayes, Chairman of Great Hill Capital in New York.

Some analysts said the market’s strong gains earlier in the day also reflected a rebound from a selloff last week, the biggest weekly percentage decline for the S&P 500 in over seven months.

On election night 2016, U.S. stock index futures plunged as Trump pulled off an upset victory against Democrat Hillary Clinton. However, the next day marked the start of the so-called “Trump rally” that saw the S&P 500 jump 5% in a month, fueled by promises of massive tax cuts and financial deregulation.

In Tuesday’s trading session, the Dow Jones Industrial Average rose 2.06% to end at 27,480.03 points, while the S&P 500 gained 1.78% to 3,369.02.

The Nasdaq Composite climbed 1.85% to 11,160.57.

The CBOE Volatility index, Wall Street’s fear gauge, touched a one-week low after hitting a 4-1/2-month high last week.

Additional reporting by Chuck Mikolajczak in New York; Editing by Sam Holmes & Shri Navaratnam