US Stocks Dip Ahead of Election & Fed Decision; Uranium Drops, Oil Rises, and Tech Faces Pressure

Image Souce: Krish Capital Pty Ltd

Index Update

US stocks finished lower on Monday as investors brace for a pivotal week with the presidential election & the Fed’s policy decision. The S&P 500 & Nasdaq both fell 0.3%, while the Dow dropped 257 points. Election uncertainty & Fed’s expected 0.25% rate cut on Thursday are keeping markets on edge

Market Movers

Utilities & communication sectors lagged, but oil stocks gained on a 3% jump in crude prices. Big Tech took hits: Apple (-0.4%), Microsoft (-0.5%), Amazon (-1.1%), Alphabet (-1.2%), and Meta (-1.1%), while Nvidia rose 0.5% after its inclusion in the Dow, reflecting its AI dominance.

Commodity Update

Uranium futures fall to $78.5/lb, a 25% drop since January's peak, as utilities ease demand concerns. The US is investing $3B to boost domestic uranium supply amid the Russian import ban. Meanwhile, China leads the nuclear race, building 22 of 58 global reactors. Copper hits $4.45/lb, boosted by China's stimulus & easing US dollar. Polls favoring Kamala Harris weigh on the dollar, increasing demand for copper. Meanwhile, OPEC+ delays production hike amid weak demand, while US oil production faces storm risks.

Futures Update

US stock futures hold steady as investors brace for a closely contested presidential race between Kamala Harris & Donald Trump. With polls showing a tight race, markets are also focused on which party will control Congress, as a potential sweep could lead to major shifts in spending & tax policies. The Federal Reserve's policy decision is also on the horizon, with a cautious 25-basis-point rate cut widely expected. Yesterday, the Dow dropped 0.61%, S&P 500 fell 0.28%, and Nasdaq declined 0.33%. Tech stocks saw notable losses, including Tesla (-2.5%), Amazon (-1.1%), and Meta (-1.1%).

Macro Update

It's Election Day in the US! Voters head to the polls for one of the closest presidential races in modern history. Donald Trump & Kamala Harris are making their final pushes in key battleground states like Pennsylvania & Michigan. With both candidates in a virtual tie, the outcome could significantly impact sectors from oil & gas to Big Tech, EVs, & financial services. Investors are watching closely. 

Major U.S. indexes recorded their second consecutive week of losses, though stocks rebounded on Friday after a tech-driven decline. Treasury yields hit four-month highs amid weak October job growth, and market volatility remained high ahead of the upcoming election. The Nasdaq led the rebound, gaining 144.77 points (0.8%), closing at 18,239.92, while the S&P 500 rose by 23.37 points (0.41%) to finish at 5,728.81. Technically, the S&P 500 broke below its rising trendline, indicating a possible consolidation phase with bearish signals. The declining 14-period Relative Strength Index (RSI) suggests a negative outlook, prompting traders to watch key price levels—resistance at 5,800 and support at 5,648.