Stock futures flat as Wall Street awaits U.S. midterm elections

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., November 7, 2022.

Brendan Mcdermid | Reuters

Stock futures were flat late Monday after a winning day for markets as investors looked ahead to the U.S. midterm election on Tuesday.

Futures linked to the Dow Jones industrial average rose 4 points or 0.01%, erasing earlier gains. S&P 500 and Nasdaq 100 futures were both slightly lower. Shares of Lyft fell 13% while Take-Two Interactive and Tripadvisor fell more than 15% each after posting disappointing quarterly results.

The moves come after a day when all major indices recorded a second consecutive positive session. The Dow Jones Industrial Average closed up 423.78 points, or 1.31%. Meanwhile, the S&P 500 gained 0.96% and the Nasdaq Composite rose 0.85%.

Investors await the results of Tuesday’s midterm elections. They will determine which party controls Congress and guide future policy and spending.

Any market reaction will likely hinge on whether Republicans take over the House of Representatives, the Senate, or both.

“The idea that [Republicans are] going to take over the house is pretty much integrated into the market,” Lori Calvasina, RBC Capital Markets, said on CNBC’s “Fast Money” on Monday. “I’m not saying it won’t be a good thing, that we’ll win” I don’t feel good for a few days or it won’t bring stability, but I think for a big kick in the S&P, they must also take over the Senate.”

Wall Street will also be watching Thursday’s Consumer Price Index report closely for the latest data on how well the Federal Reserve’s interest rate hikes have brought high inflation under control. This reading could also signal the way forward for the central bank – another hotter-than-expected report could encourage the Fed to hike rates aggressively in December.

Earnings season continues this week. Tuesday, Lordstown Engines, Lucid Group, waltz disney and AMC Entertainment all publish their latest quarterly results.

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