U.S. Stock Futures Edge Higher as Investors Brace for Election and Fed Decision

U.S. stock index futures gained slightly early Tuesday as markets steadied after recent losses. Investors prepared for a tight presidential election and a significant Federal Reserve meeting later in the week.

Market Movements

At 05:00 ET (10:00 GMT):

• Dow Jones Futures rose 55 points (+0.1%).
• S&P 500 Futures gained 12 points (+0.2%).
• Nasdaq 100 Futures advanced by 80 points (+0.4%).

On Monday, the main indices saw declines as investor sentiment remained cautious:

• S&P 500 and NASDAQ Composite dropped 0.3%.
• Dow Jones Industrial Average fell 0.6%.

Presidential Election Concerns

Polls indicate a close race between Donald Trump and Kamala Harris, with voting beginning later in the day. Trump’s policies, focusing on inflationary measures and potential tariffs on China, could negatively impact tech stocks, while Harris’s proposals include higher taxes for high-net-worth individuals and large corporations, offset by tax relief for families.

Federal Reserve and Interest Rates

The Federal Reserve is widely expected to cut rates by 25 basis points following a 50 basis point cut in September. Despite the central bank’s data-driven stance on further easing, recent economic data has painted a mixed picture.

• Sticky inflation and economic resilience could moderate rate cuts.
• Last Friday’s weak nonfarm payrolls data hinted at a cooling labor market, possibly supporting further easing.

Chair Jerome Powell’s address later this week will be closely watched for insights into future rate cut plans.

Earnings in Focus

As the third-quarter earnings season continues, companies reporting Tuesday include:

• Super Micro Computer (NASDAQ:SMCI) and Yum! Brands (NYSE:YUM).
• Palantir Technologies (NYSE:PLTR), which surged over 12% premarket after reporting better-than-expected earnings and revenue guidance.
• Dollar Tree (NASDAQ:DLTR) rose 5% as CEO Rick Dreiling announced his resignation, with COO Michael Creedon Jr. stepping in as interim CEO.
• Boeing (NYSE:BA) increased 2% after workers accepted a new contract, ending a two-month labor dispute that had slowed production.

Oil Prices and OPEC+ Production Cuts

Oil prices stabilized, with Brent crude up 0.5% at $75.48 per barrel and WTI rising 0.6% to $71.87 per barrel. Monday’s gains followed an OPEC+ decision to delay a planned output increase of 180,000 barrels per day, marking the second extension of its 2.2 million bpd cut, signaling continued concerns about global demand.