US stock markets gained, with the Dow Jones Industrial Average up 0.60% to 42,046.49, the Nasdaq Composite increasing by 1.07% to 18,373.75, and the S&P 500 climbing 0.82% to 5,759.52. The focus is on the 2024 US presidential election and the Federal Reserve's upcoming monetary policy meeting.
The competitive presidential race between former President Trump and Vice President Harris has led to market uncertainties. Analysts suggest Trump’s policies could push inflation higher, while Harris might continue current policies. Market volatility is expected in the short term, but historically, election years tend to benefit US stocks.
Historically, the S&P 500 has risen in nearly every election year since 1960, except during the 2000 and 2008 financial crises. Analyst Michael Wilson from Morgan Stanley predicts the S&P 500 could rise to 6,000 by the end of 2024, despite no significant growth expected this year.
Meanwhile, investors are also monitoring the Fed’s upcoming interest rate decision, with a high probability of a 25 basis point rate cut. The Fed's monetary policy meeting will provide insights into future economic measures.
In corporate news, Palantir (PLTR) shares surged following strong quarterly earnings, while NXP Semiconductors (NXPI) saw a decline due to disappointing forecasts. Nvidia (NVDA) is set to replace Intel in the Dow Jones Industrial Average, highlighting its growing importance in the chip sector.
Tesla announced a 4% wage increase for its Berlin factory workers. Microsoft plans to spend approximately $10 billion to lease servers from AI startup CoreWeave. Amazon's third-quarter revenue increased to $158.9 billion. Meta Platforms is employing AI to enhance privacy for younger Instagram users.
