US stock indices rose on Monday in a choppy day with attention focused on Tuesday’s midterm elections that will determine control of Congress.
At the same time, the shares of Meta Platforms appreciated after learning of a job cut in the Facebook parent company.
Republicans have gained momentum in the polls and analysts see a divided government, with the GOP winning the House of Representatives and possibly the Senate, as the likely outcome that will likely hamper Democratic President Joe Biden’s agenda.
“Under this scenario of election results, we doubt that we will make any material changes to our forecasts for GDP growth, inflation or the fed funds rate as a result of the election,” Wells Fargo economists said.
Attention will also turn to US consumer price data for October, due out on Thursday, for clues as to whether the Federal Reserve’s rapid rate hikes are helping to cool the economy.
Four Fed chairmen indicated on Friday that they would continue to consider a smaller rate hike at their next policy meeting, despite new data showing another month of strong job gains and only small signs of progress in reducing interest rates. inflation.
Traders are now betting on a 67% chance of a 50 basis point rate hike at the US central bank meeting in December.
By mid-morning, the Dow Jones Industrial Average was up 117.28 points, or 0.36%, at 32,520.50, the S&P 500 was up 9.74 points, or 0.26%, at 3,780.29, and the Nasdaq Composite it advanced 17.44 points, or 0.17%, to 10,492.69 units.
All three major US indices are in bearish territory from their previous record closing highs. The S&P 500 has lost almost 20.7% so far this year on concerns that aggressive monetary policy tightening could tip the economy into recession.
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