Traders work on the floor of the New York Stock Exchange (NYSE) on October 27, 2022 in New York City. Stocks continued their gains on Thursday with the Dow rising nearly 400 points after a new GDP report beat expectations.
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Stock futures were modestly higher on Tuesday night as polls began to close in the US midterm elections.
Nasdaq 1[ads1]00 futures rose 0.5%, while S&P 500 futures rose 0.2%. Dow futures were marginally higher.
Stocks are coming off three straight days of gains, with the Dow climbing 333 points on Tuesday for its third straight session, adding more than 1%. The rally in stocks may be due in part to the election, with Wall Street expecting Republicans to gain ground and create gridlock in Washington, DC
Morgan Stanley’s U.S. equity strategist Mike Wilson said on “Closing Bell” that a divided government could help ease concerns about inflation and higher interest rates going forward.
“To get further support for this turnout, we feel that prices need to come down… Tonight’s election could be very important in that regard, because it looks like the House will go the Republican way. That means gravel Less fiscal spending is likely to be achieved ,” Wilson said. He added that it was unclear whether markets had already priced in a big night for Republicans.
The market’s recent upturn is taking place ahead of a strong seasonal period. Historically, stocks tend to rise after midterm elections and the political clarity it brings, and the last two months of the year are considered a bullish period for investors.
One stock that weighed on futures was Disney, which fell more than 6% in extended trade after the entertainment giant missed estimates on its fourth-quarter top and bottom lines.