Sign InTuesday: Stocks Slide Ahead of U.S. Election, Fed Rate Decision Awaited
Alex Vellor
Stocks slid Monday as investors braced for a pivotal U.S. presidential election and the Federal Reserve’s upcoming interest rate decision. The Dow Jones Industrial Average dipped 0.6%, while the S&P 500 and Nasdaq Composite each lost 0.3%, pausing after recent gains. Friday’s strong tech earnings and a robust October jobs report briefly buoyed the market, but concerns over political and economic uncertainty set in as election day neared. The Nasdaq, following a seven-week winning streak, saw its rally halt, while both the S&P 500 and Dow logged back-to-back weekly losses.
Premarket Movers:
| Company | Ticker | Stock Movement | Reason |
|---|---|---|---|
| Palantir | PLTR | +14% | Raised full-year revenue forecast; strong Q3 results |
| DuPont | DD | +2% | Increased full-year profit forecast; strong Q3 earnings |
| Restaurant Brands | QSR | -1.5% | Missed Q3 revenue estimates; weak demand in key markets |
| Boeing | BA | +1.4% | Striking workers accepted new contract |
| Trump Media & Technology | DJT | +11% | Increased confidence in political future |
| Yum! Brands | YUM | -1.5% | Decline in same-store sales; weak U.S. demand |
| Archer-Daniels-Midland | ADM | -6.2% | Cut profit forecast; accounting irregularities found |
| NXP Semiconductors | NXPI | -6.4% | Q4 forecast below expectations; automotive slowdown |
| Emerson Electric | EMR | +5% | Better-than-expected Q4 results; positive 2025 outlook |
| Ferrari | RACE | -4% | Q3 earnings and revenue below estimates |
| eBay | EBAY | +1.3% | Upgraded to ‘outperform’ by Bernstein |
| Marqeta | MQ | -38% | Weaker-than-expected Q4 guidance |
Election Day Brings Last-Minute Campaigning
With election day underway, both parties engaged in final efforts to secure key votes in swing states.
Former President Donald Trump rallied supporters across North Carolina, Pennsylvania, and Michigan, while Vice President Kamala Harris campaigned in Pennsylvania. A record-setting 79 million Americans have already cast ballots through early voting or mail, underscoring the high stakes and intense voter engagement in this election.
Results are expected to come in as early as 6 p.m. ET Tuesday when polls close in parts of Kentucky and Indiana, though full results could take days.
Federal Reserve Decision Looms Large
As markets absorbed the election's weight, they also kept a close eye on the Federal Reserve, set to announce its latest interest rate decision later in the week.
The Fed’s recent moves suggest a cautious stance on further rate cuts, with signals that economic indicators will guide future actions. The October jobs report bolstered expectations for additional easing, adding another layer of complexity for investors monitoring both economic and political shifts.
Palantir Shines While Nintendo’s Switch Forecast Declines as Demand Drops
In the tech sector, Palantir (NYSE:PLTR) surged 13% in after-hours trading on Monday following its better-than-expected third-quarter results. The data analytics firm reported a 30% revenue increase year-over-year, reaching $726 million, outpacing Wall Street’s forecast of $701 million. Palantir also raised its revenue outlook for the fourth quarter and 2024. CEO Alex Karp credited the growth to robust U.S. government and commercial contracts, particularly in data services, and projected $687 million from U.S. commercial revenue alone by year’s end.
Meanwhile, Nintendo (TYO:7974) cut its sales forecast for the fiscal year ending in March 2025 as demand for its flagship Switch console slows. Sales for the second quarter fell 69% year-over-year, while revenue dropped 17%. Despite the Switch's success as Nintendo’s second best-selling console after the Nintendo DS, demand has waned over the seven years since its launch. Investors await the expected announcement of a Switch successor before the fiscal year closes in March, hoping for a revival in sales.
About The Author
Alex Vellor
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