Dow Jones Industrial Average Futures Fluctuate Amid Election and Fed Rate Decisions

As the U.S. prepares for the presidential election on Tuesday, November 5, 2024, Dow Jones Industrial Average (DJIA) futures are experiencing volatility. On Monday, the DJIA futures dropped approximately 250 points, or 0.6%, reflecting investor anxiety about the election’s potential impact on market dynamics.

On the eve of the election, DJIA futures were fractionally lower, indicating a cautious market stance. This slight decline is part of a broader market reaction to the closely contested presidential race between Kamala Harris and Donald Trump. Recent polls suggesting Harris may have a higher chance of winning than previously anticipated have contributed to the market’s unease.

As of Tuesday morning, DJIA futures were adding 0.1%, a modest increase amidst the uncertainty. This movement is in line with other market indicators, such as the S&P 500 futures rising by 0.2% and Nasdaq 100 futures gaining 0.3%.

The Federal Reserve‘s upcoming two-day policy meeting, starting on Wednesday, is another significant factor influencing market sentiment. Market participants expect Fed Chair Jerome Powell to announce a 0.25% interest rate reduction on Thursday, despite ongoing inflationary pressures and mixed labor market signals.

In addition to these key events, other market influences such as the U.S. trade deficit figures for September, the final S&P U.S. services PMI for October, and the Treasury’s $42 billion auction of 10-year notes are also being closely watched by traders.