Stock futures flat as Wall Street awaits US midterm elections
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, November 7, 2022.
Brendan Mcdermid | Reuters
Stock futures were flat Monday evening following a winning day for markets as investors looked ahead to US midterm elections on Tuesday.
Futures tied to the Dow Jones Industrial average rose 12 points or 0.04%, after erasing earlier gains. S&P 500 futures and Nasdaq 100 futures were both fractionally lower. Shares of Lyft fell 13% while Take-Two Interactive and Tripadvisor slumped more than 15% each after reporting disappointing quarterly results.
The moves come after a day when all major indexes notched a second straight positive session. The Dow Jones Industrial Average closed higher by 423.78 points, or 1.31%. Meanwhile, the S&P 500 gained 0.96%, and the Nasdaq Composite rose 0.85%.
Investors are awaiting Tuesday’s midterm election results. They will determine which party controls Congress and steer future policy and spending.
Any market reaction will likely hinge on whether Republicans take back the House of Representatives, the Senate or both.
“The idea that [Republicans are] going to take back the house is pretty much baked into the market,” said Lori Calvasina, RBC Capital Markets on CNBC’s “Fast Money” on Monday. “I’m not saying it won’t be a good thing, that we won’ t have a few days of feeling good or that it won’t provide some stability, but I think for a big kicker in the S&P they need to take back the Senate as well.”
Wall Street will also closely watch Thursday’s consumer price index report for the latest data on how much the Federal Reserve’s interest rate hikes have tamed high inflation. This reading could also signal the central bank’s path forward – another hotter-than-anticipated report could embolden the Fed to raise rates aggressively in December.
Earnings season continues this week. On Tuesday, Lordstown Motors, LucidGroup, waltz disney and AMC Entertainment all report their latest quarterly results.