Dow Jones, S&P 500 and Nasdaq slide as Iowa hurts Trump trading

US stocks fell on Monday, bracing for a week of potentially huge market-moving events – the presidential election and the Federal Reserve’s policy decision.

The S&P500 (^GSPC) was then opened near the flatline organize a comeback to end a losing week. The tech-heavy Nasdaq Composite (^IXIC) fell about 0.1%, while the Dow Jones Industrial Average (^DJI) decreased slightly.

The solid earnings season so far and optimism about the rate cut give the market reasons to be cheerful ahead of Tuesday’s elections. event with high risk for the markets. The new president – whether Kamala Harris or Donald Trump – will do that sets the course for the economy in the years that follow. A neck-and-neck race ensues with investors brace for volatility on election day itself.

But with just one session to go, polls showed Harris with a shocking lead in Iowa and gaining ground elsewhere — a sign that the Democrat has a better chance of winning than Wall Street calculated. The dollar fell the most in a month as traders unwound betting on a Trump victory. Government bond yields also fell, with the 10-year benchmark rate (^TNX) fell by almost 10 basis points to 4.30%.

Also important is the Fed’s two-day policy meeting, which starts a day later than usual on Wednesday in light of the elections.

Wall Street is convinced That Chairman Jerome Powell will herald a 0.25% interest rate cut on Thursday, despite signs of persistent inflation And clouded labor market signals. Therefore, the focus is on what the Fed could do at future meetings, with the market now seeing three fewer cuts through the end of 2025 than previously expected.

At the same time, revenue continues to flow in, thanks to beleaguered AI server maker Super Micro Computer (SMCI), Poor (ARM), and Qualcomm (QCOM) among those lined up to report this week. With 70% of the S&P 500 reporting quarterly results, the benchmark index is on track for its fifth straight quarter of earnings growth as it recovers from the 2023 earnings recession.

In other markets it is oil prices jumped almost 3% after OPEC+ decided to postpone a planned production increase by at least a month, and Iran escalated tensions in the Middle East by warning of a “crushing response” to Israel’s attacks.

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Stocks are fluctuating as markets brace for the US election and Fed policy meeting

US stocks fell on Monday as investors braced for this week’s US elections and a Federal Reserve policy meeting.

The S&P500 (^GSPC) opened near the flatline, while the tech-heavy Nasdaq Composite (^IXIC) fell by 0.1%. The Dow Jones industrial average (^DJI) lost about 50 points.

Nvidia (NVDA) shares rose more than 1% at the open on news that the AI chip was a heavyweight enters the Dow on Fridayto replace chip giant Intel (INTC). Energy (XLE) Stocks also rose on Monday due to rising oil prices.

Investors are focused on next Tuesday’s highly anticipated US presidential election, followed by a meeting of the Federal Open Market Committee on Wednesday and Thursday. Markets largely expect policymakers to announce a 25 basis point rate cut after the meeting.
New homebuyers made up the lowest share of the housing market since 1981

Concerns about affordability are keeping more and more potential starters out of the housing market.

A new report shows that first-time homebuyers made up 24% of all buyers this year, the lowest share since 1981, according to data from the 2024 National Association of Realtors (NAR) Profile of Home Buyers and Sellers.

High house prices, high financing costs and low inventories have put pressure on affordability in the past year, leaving many homes left unfinished starters on the fence about purchasing a home. In July, NAR surveyed more than 167,000 recent homebuyers, who said barriers to entry remained challenging.

“In the time frame examined, mortgage interest rates rose to almost 8% and housing affordability fell to a historic low. Homebuyers continued to struggle with housing inventory,” NAR’s deputy chief economist Jessica Lautz told Yahoo Finance.

“At the same time, rents rose and after a lull in student debt, borrowers had to resume payments, making it difficult to save for a down payment,” Lautz added.

Mortgage interest rates have risen this year to between 6% and 7% – and are now the average mortgage interest rate rates rise after hitting a two-year low in September. Meanwhile, entry-level buyers can also bid against those making all-cash offers.

“If a buyer had a solid financial foundation to enter the purchase market and there were multiple offers, then there is a chance they could be faced with an all-cash offer,” Lautz said.
Oil rises more than 2% as OPEC+ delays adding supply to the market

Oil futures rose more than 2.5% on Monday after OPEC+ said it would delay the phasing out of production cuts by a month.

West Texas average (CL=F) futures rose above $71 a barrel, while Brent (BZ=F), the international benchmark, hovered around $75 per barrel.

The Organization of the Petroleum Exporting Countries, together with Russia and other countries said it would continue its production cuts for a month until the end of 2024.

The decision to postpone the addition of 180,000 million barrels per day from December had already been postponed in recent months due to volatile oil prices.
Good morning. This is what’s happening today.

Economic data: Factory orders (September)Durable goods orders (September)

Income: Berkshire Hathaway (BRK-A, BRK-B), Cleveland Cliffs (CLF), Zodiac energy (CEG), Goodyear (G.T), Him and Her (IT), Marriott International (MAR), Palantir (PLTR), Wynn (WINE)

Here are some of the biggest stories you missed this weekend and early this morning:

Why banks (probably) favor Donald Trump

DJT Drops as Trump Media Traders Gear Up for Election Day

Harris or Trump to shape the American energy debate – but perhaps not to decide it

Oil rises as OPEC+ delays production hike, Iran ramps up rhetoric

From stocks to crypto: investors are preparing for election swings

Nvidia’s CEO asked SK Hynix to accelerate the delivery of HBM4 chips

Trump could send already high tariffs into the stratosphere

Stocks are fluctuating as markets brace for the US election and Fed policy meeting

New homebuyers made up the lowest share of the housing market since 1981

Oil rises more than 2% as OPEC+ delays adding supply to the market

Good morning. This is what’s happening today.