Wall Street is showing a moderate uptrend this Tuesday, as the United States holds its breath for the midterm elections which could reshape the political and economic landscape of the country.
Caution reigns on Wall Street on this American election day
A few hours before opening, the New York Stock Exchange is showing encouraging signs with futures contracts on the S&P 500 up 0.2% and those on the Nasdaq up 0.3%.
The New York stock market, located in the heart of Manhattan, demonstrates relative investor confidence despite the uncertain electoral context. This bullish trend can be explained in particular by the publication of generally positive corporate results and an easing of bond rates.
Large fund managers maintain a cautious approach, favoring defensive stocks while keeping a close eye on sectors likely to benefit from future policy directions. Volatility, measured by the VIX index, nevertheless remains high, reflecting a certain nervousness in the markets.
Trading volume is expected to remain moderate until the close, with investors preferring to wait for the first election results before taking larger positions.
The American economy at the center of attention
The US trade deficit widened significantly in September, reaching $84.4 billion, an increase of 19.2% from the previous month.
This deterioration is explained by a drop in exports of 1.2% combined with an increase in imports of 3%, reflecting the persistent challenges of the American trade balance.
The markets are awaiting with interest the publication of the composite PMI index and the ISM services index scheduled for today. These key economic indicators should provide valuable information on the health of the U.S. economy, particularly in the services sector which represents more than two-thirds of the country's economic activity.
In the corporate sector, DuPont sets an example with an upward revision of its 2024 objectives for adjusted EPS and operating EBITDA, despite a downward revision of its revenue forecasts.
Markets appear to have struck a delicate balance between economic optimism and political caution. The next few hours will be decisive, as the electoral results could quickly change the direction of the stock market.
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