Traders work on the floor of the New York Stock Exchange (NYSE) on October 27, 2022 in New York City. Stocks continued their upward gains on Thursday, with the Dow rising nearly 400 points following a new GDP report that beat expectations.
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Stock futures were flat as voting began to wrap up on Tuesday evening US midterm elections.
S&P 500 futures fell 0.1%, while futures for the Nasdaq 100 were flat. Dow futures fell 50 points.
Shares are coming off three straight gains, with the Dow surging 333 points on Tuesday and adding more than 1% for its third straight session. The rise in stock markets can be attributed in part to elections in Washington, D.C., that Wall Street expects Republicans to win.
said Mike Wilson, chief US equity strategist at Morgan Stanley.The closing bell“A divided government will help ease concerns about inflation and higher interest rates going forward.
“To get more support for this rally, we think we need to cut tariffs. … Tonight’s election could be very important in that sense, because it looks like they’re going to go the Republican way. That means gridlock, probably, less fiscal spending,” Wilson said. He said it was unclear whether markets had already priced in a big night for Republicans.
The market’s recent upswing occurs on the front end of a strong seasonality. Historically, stocks rise after midterm elections and the policy clarity it brings, and the final two months of the year are considered a good time for investors.
One stock weighing on the future was Disney, which fell more than 6% in extended trading after the entertainment giant missed estimates on its top and bottom lines. Fiscal fourth quarter.
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