Stock futures were modestly higher on Monday as investors geared up for the highly-anticipated U.S. presidential election. S&P 500 futures rose 0.2%, while Nasdaq-100 futures ticked up 0.1%. Futures connected to the Dow Jones Industrial Average were little changed. Nvidia shares were up 2% in the premarket after S&P Dow Jones Indices announced late Friday that the chipmaker would replace rival Intel in the 30-stock Dow. The change, which will take effect at the end of the week, comes as Nvidia continues to rip higher while Intel languishes in the artificial intelligence race. Nvidia is up 173% year to date, while Intel has lost more than half of its value in that time. Tuesday’s election results could play a pivotal role in where stocks finish off the year. The latest poll from NBC News shows a “deadlocked race” between former President Donald Trump and Vice President Kamala Harris. However, much of market aftershocks may hinge more heavily on which party takes control of Congress. If control of the U.S. House of Representatives and Senate is divided, it would likely mean a maintaining of the status quo. A Republican or Democratic sweep, however, would likely be coupled with a White House victory for the same party, and could mean fresh spending plans or a tax overhaul. Some on Wall Street view the election as a key obstacle markets need to overcome to rally into year-end. “The US election is incredibly important, but the process is likely to be incredibly noisy. Some patience, and a plan, can make the difference between navigating the noise and getting lost in it,” Morgan Stanley strategist Michael Zezas said in a note to clients. Along with the election, Wall Street is bracing for the latest rate decision from the Federal Reserve. Traders are pricing in a 96% chance of a rate cut at the conclusion of the central bank’s policy meeting, according to CME Group’s FedWatch tool. It would follow a supersize 50 basis point move in September. Greater focus will hinge on commentary from Fed Chair Jerome Powell following the meeting, as Wall Street hunts for more insight into the central bank’s rate moves from here. Earnings seasons presses on with about a fifth of the S&P 500 slated to report in the coming week. About 70% of companies that have already reported results have surpassed estimates, according to FactSet data. Super Micro Computer, Moderna, CVS Health, Qualcomm and Wynn Resorts are among the companies reporting in the coming days. Stocks are coming off a strong start to November, with Amazon and big technology stocks boosting the tech-heavy Nasdaq Composite and S&P 500 0.8% and 0.4%, respectively. The Dow Jones Industrial Average added nearly 289 points, or about 0.7%. U.S. Treasury yields were lower on Monday as investors braced for a busy week which will see voters head to the polls for the U.S. presidential election and the Federal Reserve’s next interest rate decision. The yield on 10-year Treasury was last down by eight basis points, hovering around 4.28%. The yield on the 2-year Treasury was last down by more than four basis points to 4.16%. Asia-Pacific markets rose Monday as investors readied for a busy week that includes the U.S. presidential election and the Federal Reserve’s monetary policy meeting. South Korea’s blue chip Kospi rose 1.83% to 2,588.97, snapping a three-day losing streak, while the small-cap Kosdaq gained 3.43% to close at 754.08. Hong Kong’s Hang Seng index was up 0.27% as of its final hour of trade, while mainland China’s CSI 300 rose 1.41% to end at 3,944.76. Australia’s S&P/ASX 200 closed 0.56% higher at 8,164.6. The Taiwan Weighted Index gained 0.81% to close at 22,965.39. Japan’s markets were closed Monday for a holiday. Oil prices rose more than 2% on Monday on a decision by OPEC+ to delay by a month plans to increase output, while the market braced for a crucial week that includes the U.S. presidential election and a key meeting in China. Brent futures were up $1.81 per barrel, or 2.5%, to $74.91 a barrel at 0912 GMT. U.S. West Texas Intermediate crude was up $1.86 a barrel, or 2.7%, to $71.35. On Sunday, OPEC+, which includes the Organization of the Petroleum Exporting Countries plus Russia and other allies, said it would extend its output cut of 2.2 million barrels per day (bpd) for another month in December, with an increase already delayed from October because of falling prices and weak demand. The grouping had been due to increase output by 180,000 bpd from December. Gold prices were little changed on Monday as investor caution prevailed ahead of the U.S. presidential election and looming Federal Reserve decision on interest rates. Spot gold held its ground to stand at $2,734.79 an ounce at 0831 GMT, having hit a record high of $2,790.15 last Thursday. U.S. gold futures were down 0.2% at $2,744.30.
Roodeweg 222, Willemstad, Curaçao