Election Jitters Rock Markets: Tech Earnings, Fed Decision Loom

Market Jitters Ahead of Election Day

As the nation prepares to head to the polls, investors are exercising caution, sending the Dow Jones tumbling 150 points. The slide is accompanied by a surge in demand for safe-haven U.S. Treasurys, indicating a shift towards lower-risk assets in anticipation of potential market turbulence.

Tech Stocks in Focus

Palantir Technologies, a leader in AI tools used by military and intelligence agencies, is set to release its earnings report after the market closes. The company’s performance will be closely watched, particularly amidst the ongoing AI boom.

Federal Reserve Decision Looms

This Thursday, investors will be keenly awaiting the Federal Open Market Committee’s interest rate decision, followed by a press conference featuring Fed Chair Jerome Powell. The outcome could have significant implications for the market.

Nvidia Joins the Dow Jones Elite

Nvidia, a pioneer in AI chipmaking, saw its shares rise over 1% in morning trading after being selected to join the prestigious Dow Jones Industrial Average. This milestone marks a significant recognition of Nvidia’s growing influence in the tech and AI sectors. To make way for Nvidia, Intel will be removed from the index, signaling a shift towards AI-driven growth. Intel shares fell 4% in response to the news.

Warren Buffett’s Berkshire Hathaway Sells Off Stakes

Warren Buffett’s conglomerate, Berkshire Hathaway, has continued to divest from several companies, amassing a record $325.2 billion cash pile. In the third quarter, Berkshire sold $36.1 billion of stock, including significant stakes in Apple and Bank of America, while purchasing just $1.5 billion of stock during the same period.

Market Sentiment Remains Cautious

As investors navigate the uncertainty surrounding the election outcome, they are balancing optimism with caution. The subdued stock activity reflects this sentiment, with investors opting for safer assets in anticipation of potential market volatility.

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