NEW YORK (CNN/Money) - A strong showing in the three presidential debates has helped John Kerry climb in the polls, but has it given him a bounce on Wall Street too?

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While Wall Street would likely still prefer a Bush win, Kerry's improved standing has forced investors to contemplate having the Democratic candidate in the Oval Office.

"The markets until recently have been oblivious to the possibility of a Kerry win," says Greg Valliere, chief strategist at Schwab Washington Research Group.

That's not the case anymore—and the Street has apparently grown a bit more comfortable with Kerry.

"After the first debate there was a lot of uncertainty wrung out of the market about John Kerry," says Scott Jacobson, senior trader at Jefferies & Co. "Wall Street has come to the comfort level that it kind of doesn't matter which guy is president."

Jonathan Golub, chief equity strategist at J.P. Morgan Fleming Asset Management, echoes those sentiments. "Confidence in Kerry as a viable alternative has moved up," he says, while noting that the market still assumes a Bush victory.

That increased confidence is something of a surprise, not least because Kerry has campaigned on rolling back some of the Bush tax cuts, including the reduction of the dividend tax. But many on Wall Street point out that Congress appears likely to stay under Republican control, reducing the chances that a President Kerry could push through big changes.

But if Wall Street has become more comfortable with Kerry as the election horse race has narrowed, its focus still remains elsewhere—particularly on the price of oil. "The election has just become a sideshow," says equity strategist Peter Boockvar of Miller Tabak.

Certain areas of the market may be responding to Kerry's newfound momentum, though. Although health-care stocks have been hurt by news, including Merck's Vioxx recall, Kerry's closing the gap may have been a factor as well.

"The re-emergence of Kerry as a viable candidate has also put some pressure on health care stocks," says Sam Stovall, chief investment strategist at Standard & Poor's.

As the tight race winds its way to Election Day, it's worth noting how past markets performed under Democrat versus Republican administrations.

Since 1945, the S&P 500 has gained an average of 10.7% during Democratic presidencies and 7.6% under Republicans.

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And during a Democrat's first year in office, the market has climbed an average 14.2%, considerably better than the 2.4% average decline in the first year of a Republican term.

Of course, recent history offers another possibility—one that leaves Wall Street watchers sweating.

"The worst possible outcome for the stock market is that it takes a month to decide the election," says economist Jason Schenker of Wachovia.

"People are waiting for the shoe to drop. Which shoe it is doesn't matter. They just want it to be done."