U.S. Stocks May Give Back Ground Amid Uncertainty About Election Results
After moving sharply higher for three consecutive sessions, stocks may give back ground in early trading on Wednesday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 154 points.
Traders may look to cash in on recent strength in the markets amid lingering uncertainty about the results of the U.S. midterm elections.
Control of both houses of Congress remains up for grabs following yesterday’s elections, although Republicans are projected to earn a narrow majority in the House.
The performance by Republican was not as strong as many had expected, with many candidates backed by former President Donald Trump underperforming.
It remains unclear which party will have a majority in the Senate, as key races in Georgia, Wisconsin, Nevada and Arizona currently remain undecided.
A slump by shares of Disney (DIS) may also weigh on Wall Street, with the entertainment giant plunging by 8.5 percent in pre-market trading.
The steep drop by Disney comes after the company reported fiscal fourth quarter results that missed analyst estimates on both the top and bottom lines.
On the other hand, shares of Meta Platforms (META) are likely to see initial strength after the Facebook parent announced plans to cut more than 11,000 jobs.
Overall trading activity may remain somewhat subdued, however, as traders look ahead to tomorrow’s highly anticipated report on consumer price inflation.
Stocks showed a strong move to the upside in morning trading on Tuesday before pulling back sharply in the early afternoon. The major averages once again benefited from late-day strength, however, closing firmly in positive territory.
The Dow jumped 333.83 points or 1.0 percent to 33,160.83, ending the session at its best closing level in well over two months. The Nasdaq also climbed 51.68 points or 0.5 percent to 10,616.20, while the S&P 500 advanced 21.31 points or 0.6 percent to 3,828.11.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index fell by 0.6 percent, while South Korea’s Kospi jumped by 1.1 percent.
Meanwhile, the major European markets have all moved to the downside on the day. While the German DAX Index has slid 0.7 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are both down by 0.5 percent.
In commodities trading, crude oil futures are falling $0.72 to $88.19 a barrel after plunging $2.88 to $88.91 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,710.90, down $5.10 compared to the previous session’s close of $1,716. On Tuesday, gold surged $35.50.
On the currency front, the U.S. dollar is trading at 146.44 yen compared to the 145.68 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0023 compared to yesterday’s $1.0074.
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