(Reuters) – U.S. stock index futures were steady on Tuesday ahead of Election Day, with traders bracing for volatile trading over the next few sessions until a clear winner is declared.
Both Republican candidate Donald Trump and Democrat Kamala Harris predicted victory on the final day of campaigning, with polls showing the race as extremely close.
Even the odds in the betting markets, which many investors have relied on in recent months to predict the election outcome, were mixed. Harris gained a slight lead over PredictIt overnight, but Trump retained the lead over Polymarket and Betfair.
The VIX, Wall Street’s “fear gauge” that indicates expected stock volatility, rose to 21.98, above the 30-day moving average of 19.65 but below the two-month high it hit last week.
U.S. Treasury yields fell slightly from recent highs, aiding gains for interest-rate-sensitive stocks. [MKTS/GLOB]
Megacap growth stocks edged higher in premarket trading, with Nvidia up 0.7% and Alphabet up 0.3%. Tesla rose 2%.
Stocks seen as bets on a win for the former president rose, with Trump Media & Technology Group up 4% and software developer Phunware gaining 8%.
“The markets have already priced in an element of Trump’s victory to some extent, but we will have to see what the outcome will be,” said Ben Ritchie, head of developed market equities at abrdn.
Investors are also watching the Congressional elections to determine the balance of power in Washington. Many analysts predict a split government, which would limit the president’s ability to make major policy changes.
Dow E-minis rose 32 points, or 0.08%, S&P 500 E-minis rose 6.75 points and Nasdaq 100 E-minis rose 43.75 points, or 0.22%.
Meanwhile, Boeing gained 2.1% after a lengthy and crippling strike ended after factory workers accepted a new contract offer during a vote on Monday.
To complement the action-packed week ahead, the Federal Reserve will begin its November meeting on Wednesday.
Markets have all but priced in a 25 basis point cut in key interest rates, but the outlook for future easing has become more uncertain as data points to a strong economy.
Major indexes closed lower in a choppy session on Monday.
In terms of dates, September international trade figures and October S&P Global and ISM services PMI are expected, while a handful of companies are expected to report quarterly numbers before the bell.
(Reporting by Lisa Mattackal and Shashwat Chauhan in Bengaluru; Editing by Arun Koyyur)
