December 10, 2022

Dow Jones rises as investors eye midterm results

Dow Jones rises as investors eye midterm results

The Dow Jones Industrial Average rose on Tuesday as investors await US results midterm electionswhich could affect future levels of government spending and regulation.

The Dow gained 160 points, or 0.5%, after rising more than 500 points earlier in the day. The S&P 500 was little changed. The Nasdaq Composite Index was down 0.3%. The Dow is in full swing for the third consecutive positive day.

Bitcoin drops 15% after the world’s two largest cryptocurrency exchanges, Binance and FTX, reach Merger agreement to fix the latest “liquidity crisis”.

Market participants expect Republicans to retake the House and possibly win the Senate as well when results start to come in on Tuesday night. Investors tend to like the concept of stalemate in Washington with a divided Congress and president because it will limit government spending and new taxes and regulations.

“If we have a stalemate, that’s probably the best thing that can happen to the market,” said Seth Cohan of The Wealth Alliance. “And usually the markets do well when that happens.”

In general, history shows the markets tend to earn At the end of the year and even 12 months after the midterm elections as investors are comfortable getting some clarity on future policy. The wild card may be one if the multiple races that could determine control of Congress are too close to speculate, an outcome that could affect markets on Wednesday.

“The financial market reaction to the Republican victory should be muted, as the House outcome is already widely expected, and the Senate outcome makes less of a difference to policy outcomes if Republicans control the House,” Jan Hatzius of Goldman Sachs. Written in a note on Monday.

“The Democrats’ surprise win in the House and Senate is likely to weigh on stocks, as market participants may expect additional increases in corporate tax,” Hatzius added.

Eight of the 11 sectors in the S&P 500 were trading in positive territory. The two main sectors were materials and real estate, up 1.7% and 0.9%, respectively.

SolarEdge Technologies was the leader in performance in the broader market index, rising more than 18% after posting record revenue in its most recent quarter. in another place, Kohl’s stock jumped more than 10% After the supermarket chain announced the departure of its CEO next month.

Meanwhile, shares Lift It fell 21% in disappointing quarterly results. Take-Two Interactive. interactive And the Tripadvisor They fell 12% and 17%, respectively, after the earnings announcement.