How are stock-index futures trading:
S&P 500 futures are up 0.2%.
Dow Jones Industrial Average futures are adding 0.1%.
Nasdaq 100 futures are gaining 0.3%.
On Monday, the Dow Jones Industrial Average fell 258 points, or 0.61%, to 41,795, the S&P 500 declined 16 points, or 0.28%, to 5,713, and the Nasdaq Composite dropped 60 points, or 0.33%, to 18,180.
Futures indicate a market that is cautiously positive in the early hours of election day in the U.S.
The S&P 500 sits 2.6% shy of its closing high of mid-October as nerves have set in ahead of the too-close-to-call election and the market has witnessed profit taking in a some of the mega-cap tech stocks amid concerns about overvaluation.
Still, the S&P 500 remains up 19.8% for 2024, supported by optimism the Federal Reserve will continue to reduce borrowing costs even as the U.S. economy avoids a hard landing.
“Financial markets still think that Trump will win, although they are reacting to a narrowing of the polls,” says Kathleen Brooks, research director at XTB.
“A win for Harris win could see a surge in short term volatility, a further unwinding of the long dollar/ short bonds trade, and crypto could remain under pressure,” Brooks adds.
