#StockMarket #PoliticalUncertainty #InvestmentTrends
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Stock Market Update: Futures Rise Amidst Political Uncertainty
As the stock market continues to navigate the complexities of political uncertainty, futures tied to the S&P 500 index rose 0.23% on Monday morning. This modest increase follows a challenging week where the index recorded its most significant weekly declines since April. The Dow Jones Industrial Average and Nasdaq 100 futures also saw gains of 0.1% and 0.42%, respectively.
The market's focus has shifted from large technology stocks to smaller companies, prompting this adjustment. The political arena in the United States has captured traders' attention after President Joe Biden exited the presidential race, endorsing Vice President Kamala Harris as the Democratic candidate. Observers note a growing possibility of former President Donald Trump's victory in the upcoming election following Biden's underwhelming debate performance earlier.
Jay Hatfield, CEO of Infrastructure Capital Advisors, foresees a subdued market response to Biden's withdrawal, as it was widely anticipated amidst mounting calls for his exit. Hatfield mentioned that Biden's endorsement of Kamala Harris could reduce uncertainty, potentially leading to a minor adjustment in the market sentiment favoring Harris.
Market participants are closely monitoring corporate earnings and central bank policies. There is a high expectation, around 93%, of the Federal Reserve implementing an interest rate cut in the upcoming September meeting. Consequently, investors have been reshuffling their portfolios, moving away from prominent tech stocks towards industries that could benefit from lower interest rates, such as small-cap companies and industrial sectors.
Last week, the S&P 500 and Nasdaq Composite experienced declines of 2% and 0.7%, respectively, marking their most substantial weekly losses in months. In contrast, the Dow Jones saw a modest increase of 0.7%, while the Russell 2000 index, which focuses on small-cap stocks, posted a gain of 1.7%.
Looking ahead, investors are anticipating Verizon's quarterly financial results on Monday, with no significant economic announcements expected until later in the week.
Original Article: https://www.cnbc.com/2024/07/21/stock-market-today-live-updates-.html
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