US stocks fell on Monday, as investors awaited the results of Tuesday’s US Presidential Election.
The Dow Jones Industrial Average fell 175 points (0.4%) at the time this article was written, and the S&P 500 Index dropped by 0.2%. On Monday, the Nasdaq composite fell 0.6%.
The US Treasury bill yields rose on Monday, causing stocks to fall. It could be that investors are reducing their risk in anticipation of the results.
The price of crude oil also soared after the Organization of Petroleum Exporting Countries (OPEC) and its allies decided to extend their voluntary production cut until the end of the month.
NVIDIA shares rise
NVIDIA Corporation shares rose by more than 1% after an important announcement made on Friday.
S&P Dow Jones Indices, a 30-stock Dow Jones index company, announced Friday that NVIDIA will replace Intel as the rival in its 30 stock Dow.
This change is effective from Friday. This move is made as Intel’s Artificial Intelligence has been performing poorly since January this year. The chipmaker, however, has seen a rise in sales.
CNBC reports that Nvidia has risen 176% in value year-to-date, while Intel’s stock price is down more than 50%.
Trump Media & Technology shares fell 3% on the heels of Tuesday’s election results. Stocks have become more volatile as we approach election day.
Results of the Election
The results of the US elections on Tuesday may have a major impact on equity benchmarks.
According to opinion polls, former president Donald Trump and vice president Kamala Harris have a tight race.
The market’s aftershocks will depend more on the party that controls Congress.
CNBC reported that if the US House of Representatives or Senate were divided, the status quo would be maintained.
If either Republicans or Democrats sweep the election, it would result in new policies and spending plans.
According to experts, Trump’s policy could increase inflationary pressures within the US. This could have a major impact on the market.
CNBC cited Morgan Stanley’s strategist Michael Zezas as part of a recent report.
It is important to note that the US elections are likely to be noisy. A plan and some patience can help you navigate the noise.
Fed rate cut decision
Investors will be watching the US Federal Reserve policy meeting later in the week, as well as the results of the elections.
Markets expect the US Fed will cut rates by 25 basis point after it cut them 50 basis points at their September meeting.
CME FedWatch shows that traders are pricing in 96% of the probability for the Fed to cut interest rates by 25 basis points.
Market participants will be looking for clues as to the US Central Bank’s intentions for its next rate cut cycle.
Viking Therapeutics soars as Marriott falls
The shares of Viking Therapeutics rose more than 5% Monday, after the results from an early-stage trial revealed that its drug for obesity was making progress.
Stocks of the company have risen more than 290% in this year, as investors see potential for their oral obesity drug which is currently in clinical trials.
CNBC reported that patients taking 100 milligrams of the drug achieved weight loss averages around 8.2% per month. This was higher than anticipated and surpassed rival experimental treatments.
Marriott International shares, on the other hand fell more than 2 percent after its third quarter earnings missed analysts’ estimates.
The company posted adjusted earnings per share of $2.26 on revenue of $6.26 Billion. LSEG analysts expected earnings per share of $2.31 and revenue of $6.27 billion.
Talen Energy plunges
Talen Energy, an independent energy company plunged more than 8% in its shares on Monday.
CNBC reported that the stock fell after the Federal Energy Regulatory Commission refused to approve a request for an increase in the power that the Susquehanna Nuclear Plant can send to an Amazon campus data center.
Amazon bought the campus of data centers from the company in early 2024.
The post Dow Jones and S&P 500 fall ahead of US election; NVIDIA, Viking Therapeutics increase while Talen Energy decreases could be updated as new developments unfold.
