Stock futures flat as Wall Street awaits midterm results

Traders work on the floor of the New York Stock Exchange (NYSE) on October 27, 2022 in New York City. Stocks extended their bullish gains on Thursday with the Dow rising nearly 400 points after a new GDP report that beat expectations.

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Stock futures were basically flat after recent market gains that led to Tuesday’s results midterm elections.

S&P 500 futures are up 0.1%, while Dow futures are down 10 points. Nasdaq 100 futures rose 0.2%.

Stocks are falling for 3 consecutive days of gains, likely due to a pause. The Dow rose 333 points Tuesday for the third consecutive session, adding more than 1%. The stock rebound may be due in part to the election, as Wall Street expects Republicans to gain ground and create a stalemate in Washington, DC.

Mike Wilson, chief US equity strategist at Morgan Stanley, said on CNBC:closing bell“A divided government could help ease concerns about inflation and higher interest rates in the future.

“In order to get more support for this rally, we feel that prices need to come down. … Tonight’s election could be very important in that regard, because it looks like the House will go the Republican way. That means stalemate,” Wilson said. Financial spending is likely to decrease.

The recent rally in the market occurs at the front of a strong seasonal period. Historically, stocks tend to rise after the midterm elections and the clarity of policy they bring, and the last two months of the year are a bullish period for investors.

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One of the stocks that weighed on futures was Disney, which fell more than 6% in extended trading after the entertainment giant missed estimates in its top and bottom line. fiscal fourth quarter.

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