As elections and a Fed meeting approach, US stock futures remain stable

U.S. stock index futures ticked up slightly in Monday evening trading, partially rebounding after sharp declines in recent sessions. Investors remained cautious ahead of a tight presidential race and a crucial Federal Reserve meeting later in the week.

Futures held steady following further losses on Wall Street, with major indexes extending last week's declines as traders braced for significant events ahead. Recent elevated inflation data has also added pressure, with markets preparing for a potentially less dovish Fed stance.

As of 18:13 ET (23:13 GMT), S&P 500 Futures gained 0.1% to 5,748.0 points, Nasdaq 100 Futures rose 0.1% to 20,110.0 points, and Dow Jones Futures climbed 0.1% to 41,980.0 points.

Trump and Harris in Tight Presidential Race The upcoming presidential election has kept investors on edge, with recent polls indicating a close race between Donald Trump and Kamala Harris, set to conclude Tuesday.

Earlier polling had shown Trump gaining momentum, but recent shifts indicate a tighter competition. Trump’s plans are anticipated to include more inflationary policies and increased trade tariffs on China, which could potentially weigh on the tech sector. Conversely, Harris has advocated for higher taxes on wealthy individuals and large corporations, while providing tax relief for families.

Fed Poised to Lower Interest Rates Attention is also on the Fed, which is widely expected to reduce interest rates by 25 basis points at its upcoming meeting, following a 50 bps cut in September. Although recent economic data has highlighted persistent inflation and a resilient U.S. economy, there’s uncertainty about the Fed’s willingness to lower rates further, as the central bank continues a data-driven approach to monetary policy.

However, weak nonfarm payroll figures from last Friday suggest a softening labor market, potentially keeping the Fed inclined toward easing. Fed Chair Jerome Powell’s upcoming remarks will be closely monitored for any indications on future rate cuts.

Wall Street Mixed as Earnings Provide Varied Signals Major Wall Street indexes remained rangebound over the last two sessions, absorbing steep losses from last week. The S&P 500 closed down 0.3% on Monday at 5,712.69 points, the NASDAQ Composite also dipped 0.3% to 18,182.93 points, and the Dow Jones Industrial Average fell 0.6% to 41,794.60 points.

Third-quarter earnings offered mixed results, with major tech firms delivering lukewarm performance last week. Berkshire Hathaway Inc. (NYSE) dropped 2% after reporting lower-than-expected operating earnings. In contrast, Palantir Technologies Inc. (NYSE) surged nearly 13% in after-hours trading following better-than-expected earnings.

Dollar Tree Inc. (NASDAQ) saw a 6.3% rise after announcing CEO Rick Dreiling’s resignation, with Chief Operating Officer Michael Creedon Jr. stepping in as interim CEO.

 

 

 

 

 

 

 

 

 

Paraphrasing text from "Investing" all rights reserved by the original author.