Stock futures are little changed as Wall Street awaits results of midterm elections

Stock futures are little changed as Wall Street awaits results of midterm elections

Traders work on the floor of the New York Stock Exchange (NYSE) on October 27, 2022 in New York City. Stocks continued their upward gains Thursday with the Dow rising nearly 400 points following a new GDP report that beat expectations.

Spencer Platt | Getty Images News | Getty Images

Stock futures were little changed on Tuesday evening as polls began to close in the United States midterm elections.

Futures for the Dow Jones Industrial Average ticked down 44 points, or about 0.1%. S&P 500 futures dipped less than 0.1%, while Nasdaq 100 futures edged higher by less than 0.1%.

Stocks are coming off three-straight days of gains, with the Dow climbing 333 points on Tuesday for its third-straight session adding more than 1%. The bounce for equities may be partly due to the elections, where Wall Street is expecting Republicans to gain ground and create gridlock in Washington, DC

Morgan Stanley chief US equity strategist Mike Wilson said on “Closing Bell” that a divided government could help ease concerns about inflation and higher interest rates going forward.

“In order to get further support for this rally, we feel like rates need to come down. … Tonight’s election could be very important in that regard, because it looks like the House will go the way of the Republicans. That means gridlock . Probably, less fiscal spending will be achieved,” Wilson said. He added that it was unclear whether the markets had already priced in a big night for Republicans.

The market’s recent rally is occurring at the front end of a strong seasonal period. Historically, stocks tend to rise after midterm elections and the policy clarity it brings, and the final two months of the year are considered a bullish period for investors.

One stock that weighed on futures was Disney, which fell more than 6% in extended trading after the entertainment giant missed estimates on the top and bottom lines for its fiscal fourth quarter.

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