Election Jitters Send Stocks Sliding Ahead of Vote
As the US presidential election looms, investors are bracing for impact. With over 76 million Americans having already cast their ballots, the stakes are high. Democratic candidate Kamala Harris has gained significant momentum in recent days, putting pressure on the Trump trade.
Market Uncertainty Weighs on Stocks
On Monday, US stocks traded lower, reflecting investor anxiety about the election outcome. The S&P 500, Dow Jones Industrial Average, and Nasdaq composite all ended the day in the red. Meanwhile, Treasury yields, the US dollar, and bitcoin also fell, as investors sought safer havens.
Federal Reserve Meeting Looms
But the election is just the beginning. The Federal Reserve’s next policy meeting is scheduled for Wednesday and Thursday, with an interest rate decision expected on Thursday. Markets are betting on a 96% chance of a 25-basis-point rate cut.
What’s Ahead for the Economy and Markets?
The election outcome will have significant implications for the economy and stock market. While analysts at Citi note that the stock market isn’t behaving like it has in past election years, they attribute this to expectations of continued interest rate cutting and a shallower US economic slowdown.
Market Snapshot
Here’s where US indexes stood at the close of trading on Monday:
- S&P 500: 5,712.73, down 0.28%
- Dow Jones Industrial Average: 41,794.60, down 0.61% (-257.59 points)
- Nasdaq composite: 18,179.98, 0.33%
Other Market News
- Berkshire Hathaway trimmed its stake in Apple, leaving it with $325 billion in cash.
- Ed Yardeni warned that stocks might “go nowhere” for the rest of the year amid Fed uncertainty and US debt concerns.
- A crypto PAC has already raised significant funds for the 2026 midterm elections.
- The US is pumping more oil than ever, complicating things for crude-exporting countries.
- Nvidia will replace Intel in the Dow Jones Industrial Average, and Sherwin-Williams will replace Dow.
Commodities, Bonds, and Crypto
- West Texas Intermediate crude oil rose 2.96% to $71.55 a barrel.
- Brent crude, the international benchmark, was higher by 2.76% to $75.12 a barrel.
- Gold declined 0.08% to $2,746.90 an ounce.
- The 10-year Treasury yield declined 8 basis points to 4.314%.
- Bitcoin decreased 1.64% to $67,617.
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