Stock market today: Dow, S&P 500, Nasdaq slip as Iowa surprise dents Trump trade

The market's response to the changing political landscape and potential Fed actions suggests volatility could increase in the days leading up to the election. A Democratic win may further shift market expectations, particularly in energy and financial sectors. Also, with the Fed likely cutting rates, growth stocks may see positive momentum due to lower borrowing costs. Investors should watch NVIDIA's entry into the Dow as it signals stronger market interest in tech, while oil prices are likely to remain elevated amid supply constraints.

Amid expectations for higher oil prices following OPEC's production cuts, companies in the energy sector could benefit. This may present an opportunity for ETFs focused on energy stocks. However, investor caution remains high due to political uncertainties.

As the upcoming election and Fed decisions loom, there could be increased volatility in all major indices. The likelihood of a rate cut may benefit certain sectors but also keep investors on edge about inflation trends. Traders should prepare for short-term fluctuations until the clarity post-election is established.