Stock market today: Dow leads stocks lower as Wall Street braces for Election Day

Published On Nov 4, 2024, 4:06 PM

US stocks experienced a decline as investors prepared for the upcoming presidential election and a Federal Reserve policy meeting. The S&P 500 dropped by 0.3%, and the Dow Jones fell by 0.6%. The uncertainty surrounding the elections created volatility in the market, particularly as polls indicated a tight race between President Kamala Harris and Donald Trump. The Fed's expected interest rate cut later this week also adds to the market's uncertainty. Additionally, oil prices surged nearly 3% after OPEC+ decided to delay production increases. Energy stocks outperformed, while tech stocks experienced fluctuations, with Nvidia slightly higher in anticipation of entering the Dow. Market analysts predict that depending on the election results, various sectors might perform differently, with cyclicals and consumer equities likely to react to potential administrations.

Stock Forecasts

Given the recent news and volatility related to the elections, along with the anticipated Fed interest rate cut, investor sentiment may lean towards sectors that are presumed safe or those that typically perform well under Democratic leadership. Energy stocks may continue to be supported by rising oil prices, while tech stocks might experience choppy trading due to mixed sentiments about upcoming regulatory environments.

With the significant focus on the elections, the stocks of Trump Media & Technology Group may face volatility as betting markets close to the election indicate fluctuating chances for Trump and Harris. Because of this uncertainty, and reduced market confidence resulting from polling data, the stock may experience downward pressure.

Nvidia's increased value due to its anticipated addition to the Dow and its dominance in AI may bolster investor interest. Continued spending in AI infrastructure could indicate further price increases for Nvidia stocks, benefiting from positive trends in tech investments.

Constellation Energy's stock declining after regulatory rejections demonstrates the volatility associated with nuclear stocks, which may remain under pressure as markets react to these negative news events.

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