Major equity indexes in the United States started the day on a mixed tone as investors refrain from making large bets ahead of tomorrow’s midterm elections. As of writing, The Dow Jones Industrial Average was up 0.4% on the day, the S&P 500 was adding 0.3% while the Nasdaq Composite was down 0.4%.
With Iran sanctions going into effect today, crude oil prices staged an impressive recovery and the barrel of West Texas Intermediate was last seen trading at $63.70, where it was up 1.4% on a daily basis. Boosted by rising oil prices, the S&P 500 Energy Index is up 1.5% at the moment to outperform the other 10 major sectors. On the other hand, the S&P 500 Technology and the Communication Services indexes are losing 0.6%, and 0.3% respectively to weigh on the tech-heavy Nasdaq Composite.
Previewing tomorrow’s event, “The most important imponderable is the same as in 2016 election. Trump’s voters, Mrs. Clinton’s “deplorables’ who put the President over the top are not standard Republicans. Can their vote be transferred from the President to enough local candidates to elect a GOP Congress?” said Joseph Trevisani, senior analyst at FXStreet.
“A double victory for the Democrats would be problematic for Fed policy. The tightening cycle requires an economy growing fast enough to support increases without stalling. Markets will assume reduced economic growth. The chance of three 25 basis point increases in 2019 will fade.”
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