U.S. stocks closed higher Tuesday, with the Dow industrials rising more than 100 points after the first presidential debate between Democratic candidate Hillary Clinton and Republican contender Donald Trump and a number of stronger-than-expected economic reports.

The Dow Jones Industrial Average DJIA, +0.51% closed with a gain of 133.47 points, or 0.7%, at 18,228.30, led by gains in shares of Microsoft Corp. MSFT, +2.40% , International Business Machines Corp. IBM, +0.21% and Nike Inc. NKE, +3.08% . Walt Disney Co. DIS, +1.43% was the only decliner on the blue-chip average.

The S&P 500 index SPX, +1.05% rose 13.83 points, or 0.7%, to finish at 2,159.93. Tech and consumer-discretionary shares led the gainers, rising 1% or more, while utilities closed down 1.3% and energy shares fell 0.5%, thanks to a slide in oil.

The Nasdaq Composite Index COMP, +1.71% finished up 48.22 points, or 0.9%, at 5,305.71.

The advance in stocks suggests that U.S. equity markets are betting that Clinton benefited the most from Monday’s presidential debate. Stocks are rising on the prospect of a Clinton presidency because the Democrat is viewed as a known quantity while some view Trump as being more unpredictable—a bad thing for stock investors.

“Investors have a better idea about policies of Hillary Clinton, so any sign she is closer to the presidency is a boost for markets,” said Diane Jaffee, senior portfolio manager at TCW.

Oil futures tumbled to settle down 2.7% at $44.67 a barrel after both Iran and Saudi Arabia played down expectations for a deal to freeze or cut oil production at the closely watched informal OPEC meeting on Wednesday.

Additionally, U.S. consumer confidence rose to 104.1 in September, the highest level since August 2007.

“Debate performance gave investors a little more confidence about this election, and I think today’s move came as consumer confidence came in better than expected,” said Robert Pavlik, chief market strategist at Boston Private Wealth. “I think that’s what’s behind [higher stocks] given that oil is down.”

Analysts noted that worries over Deutsche Bank and other European banks also continue to rattle investor nerves.

Read:Deutsche Bank debt is taking a beating

“Some investors are wondering if Deutsche Bank troubles may turn into a Lehman scenario and that’s putting pressure on European equities,” Mark Kepner, managing director of sales and trading at Themis Trading, referring to Lehman Brothers, which collapsed in September 2008, sending shock waves that marked the height of the financial crisis.

Read:At debate, Trump and Clinton clash on how to remake the economy

First presidential debate in 3 minutes

Mexico wave: In another sign suggesting financial markets were betting that Clinton would benefit from the debate, the Mexican peso USDMXN, +0.25% surged against the dollar on Tuesday. The greenback fell to 19.413 pesos, down from 19.879 pesos late Monday in New York.

The peso has been acting as a gauge of the presidential election sentiment on the theory that a victory for Trump will at the very least result in less trade between the two countries, if not the building of a barrier on the U.S. southern border.

The ICE U.S. Dollar Index DXY, +0.15% , a measure of the buck’s strength against a basket of six key rivals, was up 0.2% at 95.47.

Economic docket: The Case-Shiller home price index rose 5% for the year in July, while house prices rose 0.6%.

The Markit flash services purchasing managers index for September rose to 51.9 in September from 51 in August.

Movers and shakers: U.S.-listed shares of Deutsche Bank AG DB, -2.39% closed 0.6% higher after the U.S. Justice Department’s third highest-ranking official said banks can lower penalties by cooperating with authorities, according to a news report.

Shares of Royal Caribbean Cruises Ltd. RCL, +2.73% and Carnival Corp. CCL, +0.84% were among top gainers on the S&P 500 after Carnival raised its outlook for the year.

Shares of Chesapeake Energy Corp. US:CHK EQT Corp. EQT, -4.79% , and Southwestern Energy Co. SWN, +1.21% led decliners on the S&P 500.

Shares of EndoChoice Holdings Inc. US:GI soared 88% to close at $7.95 after Boston Scientific Corp. BSX, +0.13% said it would buy the medical technology company for roughly $210 million.

FactSet Inc. FDS, +0.58% plunged 6.7%, even after posting a rise in earnings and revenue in its fiscal fourth quarter.

Kite Pharma Inc. US:KITE surged 9.2% after the drugmaker late Monday released encouraging test results for its for its non-Hodgkin lymphoma drug.

Other markets: Stocks in Europe SXXP, +0.20% eked out last minute gains as oil’s slide dragged on the energy sector. In Asia, shares reversed earlier declines as investors reacted to the U.S. presidential debate, with the Nikkei Stock Average NIK, -0.29% closing up 0.8%.

Gold futures US:GCZ6 settled down 1% at $1,330.40 an ounce.

--Carla Mozee and Sara Sjolin in London contributed to this article.