Stock market today: Dow, S&P 500, Nasdaq slip as Wall Street braces for Election Day

Published On Nov 4, 2024, 12:15 PM

US stocks experienced a modest decline on Monday as investors prepared for a volatile week with key events like the presidential election and a Federal Reserve policy meeting approaching. The S&P 500 fell 0.2%, while the Nasdaq Composite also decreased by 0.2%. Despite the current losses, the earnings season has been solid, and there's optimism for an interest rate cut by the Fed. The presidential race is tight, with recent polls showing Democrat Kamala Harris gaining an edge, unsettling markets that had anticipated a Trump victory. In the energy sector, oil prices surged nearly 3% following OPEC+'s decision to postpone output increases amidst heightened geopolitical tensions.

Stock Forecasts

The upcoming Fed policy meeting and the outcome of the presidential election are likely to create significant volatility in the market. If interest rates are cut as expected, it could provide a temporary boost to stocks, particularly in the tech sector. However, depending on the election outcome, sectors may react quite differently; a Trump victory could favor energy stocks, while a Harris win may push for renewed regulatory focus in certain industries. Overall, the uncertainty surrounding these events suggests a cautious approach in the short term.

Nvidia's recent gains come from strong demand for AI infrastructure, boosting its stock price amid ongoing bullish sentiment in the AI sector. The company’s market cap has surpassed $3 trillion, positioning it strongly as a key player in this growth sector. If AI spending continues to rise as analysts predict, Nvidia may experience further upward movement.

Peloton shares rose significantly after an upgrade from Bank of America, which reflects optimism about new leadership and potential operational improvements. This kind of analyst sentiment may lead to further gains as the market reassesses the company's future under new management.

Constellation Energy's shares plummeted following the rejection of a power deal by federal regulators, which has a direct impact on its growth potential in the nuclear energy market. With regulatory hurdles increasing, investor sentiment may remain bearish in the short term.

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Investors are bracing for a week of potentially huge market-moving events — the presidential election and the Federal Reserve policy decision.

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Investors are bracing for a week of potentially huge market-moving events — the presidential election and the Federal Reserve policy decision.