USA Elections: Tension mounts on Wall Street as an unexpected trend emerges

Wall Street shows a moderate upward trend this Tuesday, as the United States holds its breath for the midterm elections that could reshape the political and economic landscape of the country.

Caution prevails on Wall Street on this day of American elections

A few hours before the opening, the New York stock exchange shows encouraging signs with futures contracts on the S&P 500 up by 0.2% and those on the Nasdaq increasing by 0.3%.

The New York stock market, located in the heart of Manhattan, reflects a relative confidence among investors despite the uncertain electoral context. This upward trend is primarily explained by the publication of generally positive corporate results and a easing of bond yields.

The major fund managers maintain a cautious approach, favoring defensive stocks while keeping a close eye on sectors likely to benefit from future political orientations. Volatility, measured by the VIX index, remains high, indicating a certain nervousness in the markets.

The trading volume is expected to remain moderate until the close, investors preferring to wait for the first election results before taking more marked positions.

The American economy at the center of attention

The American trade deficit widened significantly in September, reaching $84.4 billion, an increase of 19.2% compared to the previous month.

This deterioration can be attributed to a 1.2% decrease in exports combined with a 3% rise in imports, reflecting the persistent challenges of the American trade balance.

Markets are keenly awaiting the publication of the composite PMI index and the ISM services index scheduled for the day. These key economic indicators should provide valuable insights into the health of the American economy, particularly in the services sector which accounts for more than two-thirds of the country’s economic activity.

In the corporate sector, DuPont stands out with an upward revision of its 2024 targets for adjusted EPS and operational EBITDA, despite a downward revision of its revenue forecasts.

Markets seem to have found a fragile balance between economic optimism and political caution. The coming hours will be decisive, as election results can quickly alter the direction of the stock market.