U.S. elections in spotlight as polls open
People vote at the San Francisco City Hall voting center on the final day of early voting ahead of Election Day, on November 4, 2024 in San Francisco, California.
Loren Elliott | Getty Images
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
U.S. markets mostly gain after electionsHistorically, stocks have mostly risen after a presidential election, though there can be some short-term volatility. The three major U.S. benchmarks on average have almost always clocked gains between Election Day and year-end, going back to 1980, according to CNBC data.
Markets slip ahead of Election Day Stocks fell Monday as investors awaited the U.S. presidential election and Fed rate verdict later this week. The Dow Jones Industrial Average slumped 0.61%, the S&P 500 dipped 0.28%, the Nasdaq Composite dropped 0.33% to 18,179.98. Asia-Pacific markets traded mixed on Tuesday, with mainland China’s CSI 300 leading gains and up 2.28%.
China reviews plan to raise local government debtA parliament standing committee in China on Monday reviewed a proposal to raise the local government debt limit, according to state media. In China, local authorities have been responsible for much of the spending on public services, but have struggled in recent times as revenue from land sales to developers has fell.
Poor China takings weigh on U.S. firmsWeak revenue from China weighed on earnings of U.S. companies, largely due to low consumer confidence in the country and increased competition from local brands. Some of the companies hit were Apple, Starbucks, Nike and LVMH, but there were still bright spots, including automaker Tesla, and athleisure brands Adidas and Lululemon.
[PRO] Investors bullish on equities Despite heightened market volatility stemming from the U.S. presidential election on Tuesday, consumer confidence about equities has reached its most bullish point ever, according to the latest Consumer Confidence survey by The Conference Board.
The world will be watching America in the coming days, as the country sets its course for the next four years in the presidential election.
Both the Republican and Democratic candidates have spent months travelling the country to make their case. Polls on the East Coast will open for Election Day in just a few hours time.
The stark difference in the candidates’ positions on how to lead America is likely to introduce uncertainty in markets, but history has shown that stocks usually rise after an election, irrespective of the outcome.
CNBC data shows that the three major U.S. benchmarks have seen gains between Election Day and year-end in the presidential election year going back to 1980.
However, investors who are expecting to see gains on Wednesday may be disappointed. In the short term, the three indexes have all seen declines in the session and the week following Election Day, but have usually recovered within a month or so.
Lines from Frank Sinatra’s “My Way” encapsulate investors willing to ride out the uncertainty in markets following the election:
“The record shows I took the blowsAnd did it my way.”
— CNBC’s Christopher Hayes and Alex Harring contributed to this report.
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