Election Day Unfolds: Markets Await Presidential Outcome
As Americans head to the polls, investors are bracing for potential market volatility. The tech-heavy Nasdaq Composite is leading the gains, up 1.1%, while the S&P 500 has moved up roughly 0.9%. The Dow Jones Industrial Average has jumped around 0.7% after opening just above the flatline.
A Divided Nation, a Divided Market
The presidential race between Kamala Harris and Donald Trump remains neck-and-neck, with investors closely watching the outcome. Historically, a lack of a clear victory has brought short-term turbulence, but it has rarely halted the long-term trend for gains.
Economic Indicators Hold Steady
The dollar and Treasury yields are trading broadly steady, with the greenback nudging slightly lower and the yield on the 10-year Treasury ticking about 4 basis points higher. The Federal Reserve’s November policy decision, set to take place on Thursday, is also highly anticipated, with a 25 basis point rate cut expected.
Earnings Season Continues
A new batch of quarterly earnings is set to roll in, with results from Super Micro Computer and Ferrari on the docket. Meanwhile, Palantir’s stock surged 22% after the company’s third-quarter earnings surpassed Wall Street’s expectations, driven by a spike in spending from the US Department of Defense on its artificial intelligence tech.
Boeing Strike Ends, Palantir Soars
The bitter seven-week strike at Boeing has come to an end after factory workers voted for a new contract offering a 38% pay hike. However, the planemaker’s shares still fell around 1%. Palantir’s chief revenue and legal officer, Ryan Taylor, attributed the company’s strong sequential growth to its Department of Defense business.
Trump Media & Technology Group Stock Climbs
Trump Media & Technology Group stock climbed more than 10% higher in early trading, extending its double-digit rise as shares brace for more volatility with Election Day underway.
Betting Markets Tighten
Political betting app Kalshi recently became the first place where Americans could legally wager on the 2024 election, with Trump’s odds at 57%. Other betting markets from RealClearPolling have the odds of a Trump win at 59.2% to 39.3%. Polling-based election models, such as Nate Silver’s Silver Bulletin model, project a tighter race.
Election Day Economic Data
Today’s economic data includes the ISM services index (October) and earnings from Apollo Global Management, Devon Energy, Ferrari, Super Micro Computer, Restaurant Brands, and Yum Brands.
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