#StockMarket #ElectionImpact #TechStocks
The stock market has been witnessing significant fluctuations, particularly in the lead-up to the upcoming presidential election. Here are the key points that stand out:
Market Performance
The S&P 500 has reached a new record high, driven by solid economic data and gains in tech stocks. On Thursday, the S&P 500 advanced by 0.68%, while the Nasdaq Composite also saw a slight increase of 0.04% despite the Dow Jones Industrial Average dropping 0.70% on Wednesday.
Economic Indicators
Traders are closely watching the forthcoming weekly jobless claims report and the final figures for the second-quarter gross domestic product (GDP), both set to be released on Thursday. Economists expect 223,000 initial unemployment claims for the week ending September 21, which could influence market sentiment.
Election Impact
The impending presidential election is introducing volatility into the market. Investors are hesitant to allocate capital until after Election Day, regardless of the outcome. This caution is reflected in the market's repositioning and consideration of the 40 days leading up to the election. Tom Lee, founder of Fundstrat Global Advisors, noted that the election's unpredictability is a significant factor in current market behavior.
Tech Sector Outlook
The outcome of the presidential election could have profound implications for tech stocks. A reelection of Donald Trump might favor the tech sector, especially in artificial intelligence, although it could also lead to stricter export regulations in the semiconductor domain. Companies like Visa might benefit from a Democratic sweep due to anticipated corporate tax increases, which could lead to outperformance by large-cap fintech companies.
Specific Stock Performances
- Microsoft: Expected to benefit from a divided government, as it would likely prevent any party from fully implementing a regulatory agenda.
- Salesforce: Could be a significant winner in the event of a Republican sweep, benefiting from more favorable corporate tax rates.
- Apple: Shares could be positively affected by a Trump win, with lower tax rates and increased economic activity.
- CrowdStrike and Datadog: These cybersecurity and IT operations companies are poised to thrive regardless of the election results, given their critical roles and potential benefits from a lower interest rate environment.
Other Market Movements
Micron Technology saw a significant 13% increase after releasing optimistic guidance for the current quarter, exceeding analyst expectations. This positive news also boosted shares of competitors Applied Materials and Lam Research.
In conclusion, the current market landscape is marked by record highs, economic data releases, and the looming impact of the presidential election. Investors are navigating these factors cautiously, with a keen eye on tech stocks and broader economic indicators.
Original Article: https://www.cnbc.com/2024/09/25/stock-market-today-live-updates.html
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