Wall St struggles for direction as uncertainty around U.S. election grows
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Harris leads, Des Moines Register/Mediacom Iowa Poll shows
Nvidia up on inclusion to the Dow Jones Industrial Average
Marriott, Constellation Energy fall after results
Indexes: Dow down 0.26%, S&P 500 up 0.04%, Nasdaq down 0.11%
Updated at 10:01 a.m. ET/1401 GMT
By Lisa Pauline Mattackal
Nov 4 (Reuters) -U.S. stock indexes were trading flat to lower on Monday, as investors braced for a pivotal week for global markets in which Americans will elect a new president and the Federal Reserve is likely to cut its benchmark policy rate.
Caution prevailed as the winner of the tightly contested election between Democratic candidate Kamala Harris and Republican Donald Trump might not be known for days after the voting ends on Tuesday.
Some of the so-called "Trump trades" lost ground after a recent poll showed Harris leading in Iowa, triggering a retreat in dollar, bond yields and bitcoin.
Harris' odds have improved on several betting sites, an election indicator that many market participants keep a close watch.
"This is the biggest event for markets for the year...but we think it's wisest not to make big (investment) bets," said Michael Reynolds, vice president, Investment Strategy at Glenmede.
Choppy trading is likely in the wait for the election outcome and due to a lack of clarity on the policy implications.
"We're bracing for volatility and maybe looking for some opportunities around the edges."
CBOE's VIX measure of expected equity volatility .VIX is trading at 22.39, well above its 30-day moving average of 19.44. It is, however, still significantly below the range of 31.8 to 41 it was trading at in the week ahead of the 2020 election.
Stocks viewed as bets on a Trump win slipped. Trump Media & Technology Group DJT.O was last down 2% and software developer Phunware PHUN.O that designed an app for Trump's campaign in 2020 fell 8.3%.
Investors, meanwhile, remained largely sure of a 25 basis point interest-rate cut by the Fed in its November meeting, whose decision is expected on Thursday.
The Dow Jones Industrial Average .DJI fell 108.63 points, or 0.26%, to 41,943.56, the S&P 500 .SPX gained 2.54 points, or 0.04%, to 5,731.34 and the Nasdaq Composite .IXIC lost 20.00 points, or 0.11%, to 18,219.92.
An index of energy stocks .SPNY rose 1.6% as oil prices rose more than 2% after OPEC+ delayed plans to increase output. O/R
All three major indexes had declined for the week on Friday, as mixed earnings from technology megacaps led to losses in some of Wall Street's largest companies.
Most megacap stocks lost ground on Monday, with Tesla TSLA.O dropping 2.4% as the EV maker's China-made vehicle sales fell in October.
However, chip heavyweight Nvidia NVDA.O rose 1.1%, after S&P Dow Jones Indices said on Friday the company would replace Intel INTC.O in the Dow Jones Industrial Average. Intel shares tumbled 3%.
Hotel operator Marriott International MAR.O lost 2% after cutting its 2024 profit forecast on weak domestic travel demand in the U.S. and China.
Constellation Energy CEG.O was the biggest loser on the S&P 500, slumping 12.4% after its results. Its losses dragged the Utilities sector .SPLRCU.
On the data front, U.S. factory orders declined 0.5% in September on a monthly basis, as expected.
Advancing issues outnumbered decliners by a 2.26-to-1 ratio on the NYSE, while declining issues outnumbered advancers by a 1.03-to-1 ratio on the Nasdaq.
The S&P 500 posted seven new 52-week highs and four new lows while the Nasdaq Composite recorded 32 new highs and 83 new lows.
The Trump Trade https://tmsnrt.rs/3YeC3tB
Magnificent Seven Q3 earnings a mixed bag for equities https://tmsnrt.rs/4ehJRiH
Reporting by Lisa Mattackal and Shashwat Chauhan in Bengaluru; Editing by Arun Koyyur
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
