Just ahead of the first presidential elections debate, on Tuesday, US Stock futures traded breakeven. While Nasdaq futures increased a little lower than the rest, Dow Jones futures increased by 0.1 percent, or by 18 points. S&P 500 stocks, on the other hand, increased by 0.1 percent. It looks like the stock market is headed for a solid trading week.
On Monday, the Dow Jones increased by 1.5 percent, or by 410 points. Nasdaq increased by 1.9 percent, and S&P 500 increased by 1.6 percent.
Following the rally on Monday, the US stock market took a turn for the better. For the last four trading weeks, the S&P 500 and the Dow stocks had been falling. Even with Nasdaq, it had been witnessing a consecutive fall for three trading weeks before it managed to increase last week by 1 percent.
Stock Market Strategist Says The Recent Weak Market Was A Necessity
A US stock market expert from Waddell & Associates, David Waddell, states that the recent market weakness was necessary for the sake of major US tech stocks. He also said that the US stocks are set for volatility as the term comes closer.
Waddell further said that a majority of his clients have a huge stock of cash assets. This means that they could potentially support the stock market when the market needs it the most.
With tensions and fervor for the upcoming presidential elections rising, it is expected that political updates will majorly drive the US stock market. The first presidential debate for the coming elections between Joe Biden, Democratic presidential nominee, and Donald Trump, the current Republican president, will be hell this Tuesday night.
Stock Market Investors Nervous About A Potential Political Unrest Following The November Elections
US stock market Analysts from Wall Street are of the opinion that the first debate would determine the future current of the market. The winning candidate will determine what moves the stock market will make.
We should also note the growing anxiety of the US stock market investors with regard to the upcoming presidential elections. Many expect things to get unstable. The fact that Trump has already expressed suspicion over postal voting has further led to the investor’s anxiety. The pandemic has already created havoc for the US stock market, political unrest would just worsen the situation.
Another factor that shows a good trading week potential is the resumption of stimulus package talks. As per reports, the Democrats are planning on passing a stimulus bill of 2.2 trillion by the first week of October.
Semiconductor invested stocks will be cleared further after Micron reveals its fourth-quarter fiscal US stocks results on Tuesday.