VOT Research Report
Analytics and Recommendations
Materials, which jumped 2.5% and was up for the fourth session in a row, led the way for ten of the 11 S&P sectors that advanced. Technology companies with high interest rates saw a 2% increase as Treasury yields stabilized. US
Drug maker Amgen Inc. (NASDAQ:AMGN) shares rose 6.5% to a record high after posting favorable data about its cholesterol drug and obesity therapy, aiding the blue-chip Dow to outperform its Wall Street counterparts.
35 Senate seats and all 435 House of Representatives seats are slated for election, and analysts believe it might be days before the results are known. According to unbiased predictions and polls, Republicans had a good chance of taking control of the House and a close contest for the Senate.
Investors anticipate a similar result since Republican majority of even one chamber of Congress will thwart President Joe Biden’s efforts to pass legislation increasing corporate rules and aid in reducing expenditure by the present government.
Following the election, shares of the healthcare, energy, and defense sectors could experience increased volatility.
Republicans will take control of the House because of the past. If the Senate votes heavily in favor of the Republicans, there might be a pleasant surprise
We consider the defense industry to be the runaway favorite because, should the Republicans take control of the Congress, there will undoubtedly be an increase in military expenditure.
However, market observers say a surprise Democratic victory might lead to worries regarding tech sector regulation as well as budget spending that could increase for an already high inflation rate.
The U.S. Federal Reserve may switch to smaller rate increases if a key inflation measurement due on Thursday shows a slowdown in consumer prices, something investors are also anticipating.
Despite being up more than 10% from its October low points, the S&P 500 has still reported significant losses for the year due to concerns that a recession could be triggered by expansionary fiscal policy tightening.
At noon ET, the Nasdaq Composite was high 154.36 points, or 1.46%, at 10,718.88, the S&P 500 was ahead 46.70 points, or 1.23%, and the Dow Jones Industrial Average was up 517.96 points, or 1.58%, at 33,344.96.
Because of a 3.2% increase in chipmaker Nvidia (NASDAQ:NVDA) Corp., semiconductor stocks increased by 3%.
While ride-hailing company Lyft Inc (NASDAQ:LYFT) slumped 21.1% after estimating current-quarter earnings below Wall Street projections, Take-Two Interactive Software Inc (NASDAQ:TTWO) dropped 9.9% after the videogame publisher cut its yearly sales forecast.
On the NYSE and the Nasdaq, rising issues outpaced declining ones by a ratio of 3.36 to 1 and 1.91 to 1, respectively.
The Nasdaq registered 72 new gains and 169 new depths, compared to the S&P index’s 20 new 52-week tops and 7 low depths.
