Stock futures nudge higher as Wall Street awaits U.S. midterm elections

Wall Street set to open higher ahead of midterm elections

Stock futures were slightly higher Tuesday following a winning day for markets as investors looked ahead to U.S. midterm elections.

Futures tied to the Dow Jones Industrial Average rose 52 points, or 0.16%. S&P 500 futures were up 0.18%. Nasdaq 100 futures gained 0.47%.

Shares of Lyft fell nearly 20% premarket while Take-Two Interactive and Tripadvisor slumped more than 18% each after reporting disappointing quarterly results.

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

Investors are awaiting Tuesday’s midterm election results. They will determine which party controls Congress and steer future policy and spending. Market participants will watch whether Republicans take back the House of Representatives, the Senate or both.

“The financial market reaction to a Republican win should be muted, as the House outcome is already widely expected, and the Senate outcome makes less of a difference to policy outcomes if Republicans control the House,” Goldman Sachs’ Jan Hatzius wrote in a Monday note.

“A surprise Democratic win in the House and Senate would likely weigh on equities, as market participants might expect additional corporate tax increases,” Hatzius added.

Wall Street will also closely watch Thursday’s consumer price index report for the latest data on how much the Federal Reserve’s interest rate hikes have tamed high inflation. This reading could also signal the central bank’s path forward – another hotter-than-anticipated report could embolden the Fed to raise rates aggressively in December.

Earnings season continues this week. On Tuesday, Lordstown Motors, Lucid Group, Walt Disney and AMC Entertainment all report their latest quarterly results.

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