December 3, 2022

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Stock futures dip as Wall Street awaits midterm election 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 are down – after recent market gains – as a result of midterm elections It continued with the US House of Representatives and the Senate controlling the air.

Futures related to the Dow Jones Industrial Average, S&P 500 and Nasdaq are down about 0.5% each, with Dow futures down about 175 points around 5:30 AM ET.

Stocks are falling for 3 consecutive days of gains, likely due to a pause. The Dow rose 333 points on Tuesday for the third consecutive session of more than 1% gain. The stock rebound may be due in part to the election, as Wall Street had been expecting Republicans to gain ground and create a stalemate in Washington, DC.

But control of both houses of Congress is not clear so far overnight.

Mike Wilson, chief US equity strategist at Morgan Stanley, said on CNBC:closing bell“That if it does end up splitting the government, it could help ease concerns about inflation and higher interest rates going forward.

“It looks like the House will go the Republican way,” Wilson said. “This means deadlock. Most likely, less financial spending will be achieved.”

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.

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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.