U.S. stocks close lower before election


  • World
  • Tuesday, 05 Nov 2024

NEW YORK, Nov. 4 (Xinhua) -- U.S. stocks ended lower on Monday, as investors anticipated a pivotal week with two major events on the horizon: the U.S. presidential election and the Federal Reserve's upcoming policy decision.

The Dow Jones Industrial Average fell by 257.59 points, or 0.61 percent, to 41,794.6. The S&P 500 sank 16.11 points, or 0.28 percent, to 5,712.69. The Nasdaq Composite Index shed 59.93 points, or 0.33 percent, to 18,179.98.

Seven of the 11 primary S&P 500 sectors ended in red, with utilities and communication services leading the laggards by losing 1.21 percent and 0.92 percent, respectively. Meanwhile, energy and real estate led the gainers by going up 1.87 percent and 1.13 percent, respectively.

The major stocks moved as the U.S. Treasury notes saw gains, signaling some investors may be shifting toward safer assets ahead of election day. The 10-year Treasury yield eased slightly, trading below 4.3 percent, down from closing of 4.397 percent on Friday.

Earnings reports are looking robust, with nearly 80 percent of S&P 500 companies -- about 349 firms -- having reported results, signaling strength this quarter, according to Bank of America strategist Savita Subramanian. Despite increased mentions of weak demand, the strategist sees indications that the downturn could be stabilizing.

A robust earnings season, combined with hopes for an interest rate cut, has kept market sentiment mixed as the election nears, a critical moment for markets. "The markets are marking time right now," said Jim Lebenthal, chief equity strategist at Cerity Partners. "They don't know who's going to get elected. We're all just going to sit and watch this movie."

Adding to the anticipation is the Fed's two-day policy meeting, which will begin on Wednesday, delayed due to the election. Wall Street largely expects Fed Chair Jerome Powell to announce a 25-basis-point cut on Thursday, even amid persistent inflation concerns and mixed signals from the labor market.

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