The S&P 500 rose on Tuesday, Election Day, driven largely by gains in technology stocks.
As of 4:00 p.m. ET (21:00 GMT), the Dow Jones Industrial Average gained 427 points (1%), the S&P 500 rose 1.2%, and the NASDAQ Composite climbed 1.4%.
Tight Presidential Race between Trump and Harris
Investors are closely watching the tight race between Donald Trump and Kamala Harris. Polls indicate the results could shape U.S. trade and tax policies for the next four years.
While Trump was gaining ground in earlier polls, recent data shows Harris closing in. Trump’s platform, including inflationary policies and stricter tariffs on China, could pose challenges for major tech firms. Harris, on the other hand, proposes higher taxes on wealthy individuals and large corporations, with a focus on easing tax burdens for families.
Federal Reserve Anticipates Rate Cut
Market activity on Tuesday was tempered by the upcoming Federal Reserve meeting on Thursday, where the Fed is expected to announce a 25 basis point rate cut following a previous 50 bps reduction in September.
While recent inflation data and economic strength have created some uncertainty about future rate cuts, weaker than expected nonfarm payrolls data from Friday suggests the labor market is slowing, potentially keeping the Fed inclined toward more easing. Chair Jerome Powell’s remarks on future rate policy are anticipated.
Palantir Sees Strong Gains on Earnings Beat
Third quarter earnings have presented mixed results, with some companies outperforming expectations. Palantir Technologies (NYSE) surged over 23% after surpassing earnings expectations and reporting strong revenue. Palantir’s U.S. commercial growth outpaced projections, driven by enterprise demand and 104 deals valued at over $1 million.
Restaurant Brands (NYSE), however, saw a nearly 3% decline after missing revenue estimates, with weaker demand at Tim Hortons and Burger King, as well as challenges in international markets like China and the Middle East. Meanwhile, Astera Labs Inc (NASDAQ) soared 37% following a strong quarterly report that outperformed analyst estimates.
Boeing Settles with Striking Workers; Dollar Tree CEO Steps Down
Boeing (NYSE) slipped 2.6% as striking workers agreed to a new contract, ending a prolonged work stoppage. Dollar Tree (NASDAQ) saw a slight decline of 0.1% after announcing CEO Rick Dreiling’s resignation, with COO Michael Creedon Jr. stepping in as interim CEO.
Crypto Stocks Rally on Bitcoin’s Rise
Cryptocurrency stocks rose sharply as Bitcoin climbed past $70,000, with companies like Coinbase Global Inc (NASDAQ), MicroStrategy Incorporated (NASDAQ), and Riot Platforms (NASDAQ) benefiting from the surge.
