Markets show slight gains as investors prepare for potential volatility in response to election results and upcoming Federal Reserve decisions.
Wall Street goes up this Tuesday while Investors were waiting for some results or signs of a high-risk presidential election for the United States. The broad market index gains 0.6%, and the Nasdaq Composite advances 1%. The average Dow Jones industrial climbs 72 points, or 0.4%.
The latest surveys suggest that The race is “very close” between former President Donald Trump and Vice President Kamala Harris. Much attention is also paid to which party will dominate Congress, since a sweeping victory for Republicans or Democrats could lead to drastic changes in spending or a major overhaul of fiscal policy.
The results could have a significant effect on the stock market close by the end of the year, but investors should be prepared for some near-term volatility. CNBC data dating back to 1980 suggests that major Averages usually rise between Election Day and the end of the yearalthough they normally fall in the following session and week. Uncertainty about the results could lead to further instability in the market.
Wall Street, beyond the election
Beyond the elections, Investors Await Fed’s November Rate Decisionwhich will be announced on Thursday, as well as new comments from Chairman Jerome Powell on the central bank’s next monetary policy steps. According to CME Group’s FedWatch tool, traders are estimating a 98% probability of a quarter-point cut following September’s half-point reduction.
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Regarding business results, Palantir rose 16% on strong quarterly results and optimistic revenue forecasts, while NXP Semiconductors fell 7% due to a weak outlook due to macroeconomic concerns.
Stocks finished lower in Monday’s session. The Dow fell more than 250 pointsor 0.6%. The S&P 500 and Nasdaq Composite fell about 0.3% each.
The S&P 500 is already up more than 19% so far this year, an unusually strong rise ahead of an election, and is within 3% of its all-time high.
Source: Ambito
