Stocks Lower as Elections Loom – US Market Wrap
Stocks finished lower and bonds climbed, with polls continuing to depict a tight race in the US presidential election ahead of the Federal Reserve decision.
In the run-up to Tuesday’s vote, equity traders decided to stay on the sidelines as a hurry of polls showed voters are narrowly split between Donald Trump and Kamala Harris. The likelihood of a disputed result could drag the vote count out for weeks or even months. For many, that means a potential rise in volatility. Treasuries rose across the curve and the dollar dropped the most in over a month.
The other positioning challenge is the number of additional catalysts surrounding the vote that are likely to move the market. Election Day will quickly be followed on Thursday by the Fed decision and Jerome Powell’s press conference, where he’ll give details on the central bank’s interest-rate path. And a big chunk of US companies are still due to report their earnings.
The S&P 500 fell 0.3%. The Nasdaq 100 dropped 0.3%. The Dow Jones Industrial Average slid 0.6%. Treasury 10-year yields declined nine basis points to 4.29%. Bitcoin fell 2.6%. Oil climbed after OPEC+ agreed to push back its December production increase and Iran outlined a possible response to Israel’s recent bombardment.
