Traders work on the New York Stock Exchange trading floor.
New York Stock Exchange
Stock futures fell in overnight trading on Sunday as investors prepared for the highly anticipated U.S. presidential election.
Futures connect to Dow Jones Industrial Average fell 0.3%, or 130 points, while S&P 500 Index Futures down 0.25%. Nasdaq 100 Futures down 0.3%.
Stocks got off to a strong start in November, with Amazon and Big Tech stocks boosting the tech-heavy Nasdaq and S&P 500 -0.8% and 0.4%, respectively. The Dow Jones Industrial Average rose nearly 289 points, or about 0.7%.
Tuesday’s election results could lead to a divided or united government, which could play a key role in how stocks end the year. The latest NBC News poll shows “A deadlocked game” Between former President Donald Trump and Vice President Kamala Harris.
However, much of the market’s aftershocks may depend on which party controls Congress. If control of the U.S. House and Senate is split, that could mean maintaining the status quo. However, a Republican or Democratic sweep could come with a victory for the same party in the White House and could mean new spending plans or tax reform.
Some on Wall Street see the election as a key hurdle for the market to overcome before it rebounds before the end of the year, with CFRA Research’s Sam Stovall noting that strong performance early in an election year tends to translate into “further improvement” in the market, based on data going back to 1944. . November and December.
“I think we’re going to see some volatility next week,” she said Friday on CNBC’s “Closing Clock.” “We have a lot to do but I think once we get through this we’ll regroup in November and December.”
With the election underway, Wall Street is awaiting the Federal Reserve’s latest interest rate decision. Traders see a 96% chance of a rate cut at the end of the central bank’s policy meeting CME Group’s FedWatch Tool. Previously, interest rates were significantly raised by 50 basis points in September.
The bigger focus will be on Fed Chairman Jerome Powell’s comments after the meeting as Wall Street seeks more insight into where the Fed’s interest rates will go.
Earnings season is upon us, with about one-fifth of the companies in the S&P 500 due to report next week. FactSet data shows that about 70% of companies that have reported results have exceeded expectations. Companies including Super Micro Computer, Moderna, CVS Health, Qualcomm and Wynn Resorts will release reports in the coming days.
—CNBC’s Sarah Min contributed reporting
