Stock futures rise as Wall Street awaits US midterm elections
Stock futures were slightly higher on Tuesday after a winning day for markets as investors looked ahead to the US midterm elections.
Futures tied to the Dow Jones Industrial Average rose 52 points, or 0.16%. S&P 500 futures rose 0.18%. Nasdaq 100 futures gained 0.47%.
The moves come after a day when all the major indexes recorded a second consecutive positive session. The Dow Jones Industrial Average closed up by 423.78 points, or 1.31%. Meanwhile, the S&P 500 gained 0.96% and the Nasdaq Composite gained 0.85%.
Investors await the results of Tuesday’s midterm elections. They will determine which party controls Congress and direct future policy and spending. Market participants will be watching to see if Republicans take back the House, the Senate or both.
“Financial market reaction to a Republican victory should be muted, as the House outcome is already widely expected and the Senate outcome makes less of a difference to policy outcomes if Republicans control the House,” Goldman Sachs’ Jan Hatzius he wrote in a note dated Monday.
“A surprise Democratic win in the House and Senate would likely weigh on stocks, as market participants could expect additional corporate tax increases,” Hatzius added.
Wall Street will also be closely watching Thursday’s consumer price index report for the latest data on how well the Federal Reserve’s rate hikes have tamed high inflation. This reading could also signal the central bank’s path forward – another warmer-than-expected report could encourage the Fed to raise rates aggressively in December.
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