Stocks have shown a lack of direction over the course of the trading session on Monday, with the major averages bouncing back and forth across the unchanged line. The choppy trading comes on the heels of the notable rebound seen last Friday.
Currently, the major averages are posting modest losses. The Dow is down 178.29 points or 0.4 percent at 41,873.90, the Nasdaq is down 6.05 points or less than a tenth of a percent at 18,233.87 and the S&P 500 is down 6.37 points or 0.1 percent at 5,722.43.
The lackluster performance on Wall Street comes as traders seem reluctant to make significant moves ahead of the U.S. elections on Tuesday, as Vice President Kamala Harris faces off against former President Donald Trump.
With polls showing an extremely tight race between Harris and Trump, the outcome of the presidential election may not be known on Election Day.
The results of House and Senate races are also likely to be in focus, as the makeup of Congress could affect how much the next president can accomplish.
Traders are also looking ahead to the Federal Reserve’s monetary policy decision, which is due to be announced on Thursday.
The Fed is widely expected to lower interest rates by another 25 basis points, but traders will be looking to the accompanying statement for clues about the likelihood of future rate cuts.
Among individual stocks, shares of Nvidia (NVDA) have jumped on news the AI darling will replace Intel (INTC) in the Dow Jones Industrial Average prior to the start of trading on Friday.
Paint maker Sherwin-Williams (SHW) has also surged higher following news it will replace Dow Inc. (DOW) in the Dow Jones Industrial Average.
S&P Dow Jones Indices said the changes were initiated to ensure a more representative exposure to the semiconductors industry and the materials sector, respectively.
On the other hand, shares of Intel and Dow are likely to move to the downside on the news of their replacement in the blue chip index.
Sector News
Most of the major sectors are showing only modest moves on the day, contributing to the lackluster performance by the broader markets.
Energy stocks have shown a strong move to the upside, however, with a sharp increase by the price of crude oil contributing to the strength in the sector.
Reflecting the strength in the energy sector, the Philadelphia Oil Service Index is up by 2.4 percent and the NYSE Arca Oil Index is up by 1.6 percent.
Housing stocks are also seeing considerable strength, while airline stocks have moved notably lower, dragging the NYSE Arca Airline Index down by 1.8 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Monday, with the Japanese markets closed for a holiday. China’s Shanghai Composite Index jumped 1.2 percent, while Hong Kong’s Hang Seng Index rose by 0.3 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.’s FTSE 100 Index crept up by 0.1 percent, the French CAC 40 Index and the German DAX Index fell by 0.5 percent and 0.6 percent, respectively.
In the bond market, treasuries have moved notably higher amid uncertainty ahead of the presidential election. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 5.8 basis points at 4.305 percent.
U.S. Stocks Turning In Lackluster Performance Ahead Of Elections
2024-11-04 17:54:28
