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Index Update
US stocks surged on Election Day, with the S&P 500 up 1%, Nasdaq 100 gaining 1.3%, and the Dow climbing nearly 400 points as investors eagerly awaited the outcome of the tight race between Kamala Harris and Donald Trump. With the election behind us, all eyes are now on the Federal Reserve’s policy decision Thursday, with markets widely expecting a 25 basis point rate cut. However, caution prevails as investors brace for potential volatility if election results face delays or disputes
Market Movers
All sectors closed in the green, with consumer discretionary, industrials, and tech leading the way. Chipmakers saw significant gains, with Nvidia rising 2.5%, Intel up 3.4%, and Broadcom climbing 2.6%, buoyed by strong AI data center demand, highlighted by Astera Labs’ solid Q3 earnings. Major tech stocks also performed well, with Meta (+1.6%), Amazon (+1.7%), and Tesla (+4.8%) all posting solid gains. On the downside, Boeing fell 2% after workers accepted a new labor deal, ending a lengthy strike.
Commoditis Update
Brent crude oil drops to $74, ending 5-day gain, pressured by a stronger US dollar, rising US crude inventories (+3.1M bbl), & concerns over US election results. Silver hits 3-week low as Trump leads, boosting the "Trump trade." Copper falls 2% amid tariff fears & strong dollar. All eyes on China's National People's Congress & Fed's rate decision.
Macro Update
The 10-year US Treasury yield jumps to 4.4%, its highest in 4 months, as Trump claims victory in the presidential race. A Trump presidency is expected to boost economic growth with tax cuts, fiscal spending, and higher rates to curb inflation. The dollar soars to a 4-month high, while the Mexican peso tumbles. Bitcoin hits a record $75,060 amid "Trump trade" optimism. Investors eye Congressional control and policy changes.
Futures Update
US stock futures climbed on Wednesday as early results from the hotly contested election began to pour in after polls closed in several states. Trump leads with 246 electoral votes, while Harris has 214 so far, as investors keep a close eye on the balance of power in Congress, which could have major implications for future spending and tax policies. Meanwhile, markets are gearing up for the Federal Reserve's policy decision, with many anticipating a 25 basis point rate cut. In Tuesday’s regular session, the Dow rose 1.02%, S&P 500 gained 1.23%, and the Nasdaq Composite jumped 1.43%, with all sectors posting gains, led by consumer discretionary, industrials, utilities, and tech. Notable stock movers included Palantir Technologies and Astera Labs, which surged 23.5% and 37.7%, respectively, on the back of strong quarterly results.







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