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Dow, S&P 500, Nasdaq rise as Wall Street braces for election results

Posted on by Nargang
Dow, S&P 500, Nasdaq rise as Wall Street braces for election results

US stocks traded firmly in the green by mid-morning Tuesday as Election Day began as investors settled in to see whether Kamala Harris or Donald Trump would shape the economy as the next president.

The highly technological Nasdaq Composite (^IXIC) led gains, rising about 1.1%, while the benchmark S&P 500 (^GSPC) increased by approximately 0.9%. The Dow Jones Industrial Average (^DJI) jumped around 0.7% after opening just above the flat line on the heels of a loss day for stocks.

Americans are heading for the vote with Harris and Trump neck and neck after a hotly contested presidential race. Investors are gearing up for market volatilityas the result may not become clear for days or even weeks if the result is contested.

Read more: Yahoo Finance’s guide to the presidential election and what it means for your wallet

Given the huge difference in the positions of the candidates on the economy, a long wait for a declared winner could inject more uncertainty for markets. But historically, while the lack of a clear victory has brought short-term turbulence, it has rarely stopped the long-term trend for earnings.

The dollar (DX-Y.NB) and Treasury yields traded broadly flat after pulling back on Monday as traders returned bet on a Trump victory. The green dollar nudged slightly lowerwhile the benchmark 10-year Treasury yield (^TNX) ticked about 4 basis points higher.

Next up is the Federal Reserve’s November policy decision, which also has a lot in play on election day. Chairman Jerome Powell is it is overwhelmingly expected to bring a rate cut of 25 basis points at the end of the two-day meeting on Thursday.

Meanwhile, another big batch of quarterly earnings is due, with results from struggling AI server maker Super Micro Computer (SMCI) and Ferrari (RACE) on the file.

Bitter seven-week strike at Boeing (nay) ended after the factory workers voted for a new contract offering a 38% salary increase. The aircraft maker’s shares were further down around 1% after initially opening the day higher.

LIVE 6 updates

  • Laura Bratton

    Palantir shares rise as Defense Department spending fuels revenue

    Palantir (PLTR) shares rose 22% after the company’s third-quarter earnings beat Wall Street expectations due to an increase in spending from the US Department of Defense for its artificial intelligence technology.

    Palantir’s chief revenue officer and chief legal officer, Ryan Taylor, said the company’s US government business posted its “strongest sequential growth in 15 quarters, driven in large part by 21% quarter-on-quarter growth in our DoD (Department of Defense) business.” .

    Global government spending for Palantir’s products, primarily in the US, rose 40% year over year to $408 million in the third quarter, accounting for 56% of the company’s total revenue for the period. That was ahead of the $379 million expected for the segment, according to Bloomberg consensus estimates.

    Overall, the company reported adjusted earnings per share of $0.10 for the quarter, a penny above expectations, on revenue of $725.5 million, which beat analysts’ expectations of $703.7 million. Wall Street.

    Read the full story here.

  • Alexandra Canal

    DJT rises by double digits as election day begins

    Shares of Trump Media & Technology Group (DJT) climbed more than 10% higher in early trading on Tuesday, extending its double-digit gain to start the week as a stock support for more volatility with election day underway in the US.

    The stock suffered the largest percentage decrease last week and closed down about 20% to end the five-day period on Friday, which shaved about $4 billion off its market cap. The stock has doubled since its September lows.

    The rally in stocks comes as investors await the election of the next president: Donald Trump or Kamala Harris.

    Before the recent volatility, shares of the company, home of the Republican candidate’s social media platform Truth Social, had been on a steady rise as both domestic and overseas betting markets shifted in favor of a Trump win.

    Prediction sites like Polymarket, PredictItand Kalshi all showed Trump’s presidential chances ahead of Democratic nominee and current Vice President Kamala Harris. That lead, however, narrowed significantly over the weekend as new polls showed Harris beating Trump in Iowa, who historically voted Republican.

    And as betting markets narrow, national surveys show both candidates in a virtually deadlocked race. Polls in key battleground states like Pennsylvania, Michigan and Wisconsin, which will likely decide the fate of the election, also show slim margins.

  • Ben Werschkul

    Betting markets, election models point to close race as voters cast ballots

    Here’s what the betting markets and election forecasters are saying as the 2024 campaign draws to a close.

    Political betting app Kalshi recently became the first place Americans could legally bet on the 2024 election — and the bets are in.

    Heading into election day, the site put Trump’s ratings at 57% which resembles “a very slightly biased coin sheet,” Kalshi co-founder Tarek Mansour said in an appearance on Yahoo Finance on Monday.

    A compilation of other betting markets from RealClearPollingwhich covers other popular sites open to the best overseas, from Polymaket to Smarkets, has Trump winning 59.2% to 39.3%. Those odds mean Harris would win nearly four contests if the election were held 10 times.

    As for poll-based election models, they were projecting a tighter race.

    Nate Silver’s Silver Bulletin model ran its last update at 12pm ET on November 5th and found an almost exact tie in the Electoral College probability, with Harris winning 50% of the time to Trump’s 49.6%.

    Silver’s final round included 80,000 simulations, with Harris winning in 40,012 of them, he wrote.

    The electoral model 538.com it was another throw up. He found that Harris won 50 out of 100 simulations. Trump won 49 times out of 100, with less than a 1 in 100 chance of not winning the Electoral College.

    Final analysis from the Economist magazine found a slight Harris advantage, with the vice president winning 56 of 100 hypothetical contests.

  • Alexandra Canal

    Stocks open higher on Election Day

    US stocks opened mostly higher on Tuesday as Election Day got underway. Markets are in wait-and-see mode when it comes to who will end up in the White House: Kamala Harris or Donald Trump.

    The highly technological Nasdaq Composite (^IXIC) led gains, up 0.5%, while the benchmark S&P 500 (^GSPC) increased by approximately 0.3%. The Dow Jones Industrial Average (^DJI) open just above the flat line on the heels of a loss day for stocks.

  • Jenny McCall

    Good morning. Here’s what’s happening today.

  • Brian Sozzi

    A good reminder for investors on Election Day

    Election day has arrived.

    And with it, all the typical jokes about the results for the country, the world and the markets. Amid the heavy flow of news, Truist Co-Chief Investment Officer Keith Lerner (who will be Opening offer podcast tomorrow at 8 a.m. ET with his post-election analysis) dropped the helpful chart below.

    I think it provides a good reminder that regardless of the outcome of the presidential election, it has paid dividends to be a stock investor over time.