Jamie Spencer
Dow Jones futures were relatively unchanged on Monday morning, with slight moves in S&P 500 and Nasdaq futures as investors shifted focus toward the upcoming U.S. presidential election, the Federal Reserve meeting, and a busy week of corporate earnings reports. With market volatility on the horizon, investors remain cautious as election betting markets show continued fluctuations.
Key Corporate Moves: Berkshire, Nvidia, and Tesla
Warren Buffett’s Berkshire Hathaway (BRKB) reported a 6% decline in operating profit for the third quarter, down to $10.09 billion. Despite the slight dip in revenue to $93 billion, Berkshire’s cash levels surged to a new high of $325.21 billion, fueled by sales of Apple (AAPL) and Bank of America (BAC) stocks. However, BRKB stock edged lower after the company paused its stock buyback program.
Meanwhile, Nvidia (NVDA) saw a boost in premarket trading after it was announced late Friday that the chipmaker will replace Intel (INTC) in the Dow Jones Industrial Average on Nov. 8. Nvidia’s stock has been a top performer, though it fell 4.4% last week, dipping below a 140.76 buy point before regaining key levels. Tesla (TSLA), on the other hand, continued its downward slide, falling below its buy point and nearing a sell signal early Monday.
Other stocks in focus include Constellation Energy (CEG) and Vistra (VST), both major players in the S&P 500, as well as Viking Therapeutics (VKTX), which saw a rise in premarket trading following promising early results for its experimental obesity drug.
Market Sentiment Shifts Ahead of Election and Fed Meeting
Investors are increasingly cautious heading into the U.S. presidential election, where market bets had previously been leaning toward a Donald Trump victory over Kamala Harris. However, late last week, the market began to pare back those bets, taking cues from betting markets, which continued to fluctuate over the weekend.
In addition to election uncertainty, the Federal Reserve’s upcoming meeting looms large on the horizon, with investors looking for any indications of potential shifts in monetary policy. The 10-year Treasury yield fell several basis points to 4.29%, offering some relief to stocks after weeks of rising yields tied to election-driven market sentiment.
Crude oil futures also rose sharply, up 3% following OPEC+’s decision to delay its production increase until the end of 2024. The move wasn’t unexpected, but the timing ahead of U.S. elections has added another layer of uncertainty for markets.
Dow Futures and What’s Ahead
Dow Jones futures fell slightly early Monday, while S&P 500 futures rose 0.1%, and Nasdaq futures edged higher. However, overnight futures movements often don’t reflect what will happen when regular trading resumes. Investors remain cautious, with big news events like the election and Fed meeting expected to drive market sentiment in the days ahead.
As earnings reports from key companies roll in and broader market dynamics continue to shift, investors are encouraged to stay vigilant and avoid making hasty decisions until more clarity emerges. With the election and significant economic events on the horizon, market volatility is expected to remain elevated.
