December 3, 2022

Stock futures changed little as Wall Street awaits midterm results

Stock futures changed little as Wall Street awaits midterm results

Traders work on the floor of the New York Stock Exchange (NYSE) on October 27, 2022 in New York City. Stocks extended their bullish gains on Thursday with the Dow rising nearly 400 points after a new GDP report that beat expectations.

Spencer Platt | Getty Images News | Getty Images

Stock futures were flat on Tuesday evening as polls began to close US midterm elections.

S&P 500 futures were down 0.1%, while Nasdaq 100 futures were flat. Dow futures fell 50 points.

Stocks are retreating from three straight days of gains, with the Dow rising 333 points on Tuesday for the third straight session, adding more than 1%. The stock rebound may be due in part to the election, as Wall Street expects Republicans to gain ground and create a stalemate in Washington, DC.

Mike Wilson, chief US equity strategist at Morgan Stanley, said:closing bell“A divided government could help ease concerns about inflation and higher interest rates in the future.

“In order to get more support for this rally, we feel that prices need to come down. … Tonight’s election could be very important in that regard, because it looks like the House will go the Republican way. That means stalemate,” Wilson said. Fiscal spending will likely come down.” He added that it was unclear whether markets had actually set prices on a Republican big night.

The recent rally in the market occurs at the front of a strong seasonal period. Historically, stocks tend to rise after the midterm elections and the clarity of policy they bring, and the last two months of the year are a bullish period for investors.

One of the stocks that weighed on futures was Disney, which fell more than 6% in extended trading after the entertainment giant missed estimates in its top and bottom line. fiscal fourth quarter.