US pre-open: Subdued start expected as markets brace for election volatility

5th Nov 2024 10:18

(Sharecast News) - US stock futures were inching higher on Tuesday, though gains were likely to be limited as investors scaled back their appetite for risk ahead of the presidential elections.

By 0630 ET, futures on the Dow and S&P 500 were rising 0.2% while the Nasdaq was showing a gain of 0.4%.

While there will be some economic indicators due for release on Tuesday, the focus of the session - and likely the rest of the week - will be firmly fixed on Washington DC, with Americans set to pick between former president Donald Trump and current vice president Kamala Harris in the race for the White House.

"Today sees the US electorate head to the polls, in a hotly contested election that has huge implications for global markets over the coming years. Despite a brief spike in support for Harris off the back of the weekend polls, we have seen the betting markets push back in the direction of a Trump victory since," said Joshua Mahony, chief market analyst at IG.

10-year US Treasury yields were up 2.7 basis points at 4.316%, rebounding slightly after dropping more than 10bp the previous session.

Futures for Truth Social owner Trump Media & Technology Group were surging in pre-market trade, though likely only staging a rebound after heavy falls last week.

Shares in software group Palantir Technologies were set to soar after the company beat forecasts comfortably with its third-quarter results, helped by a 40% jump in US government revenues.

Casino and hotels operator Wynn Resorts was falling sharply after missing estimates with its third-quarter revenues and profits.

In economic news, two service-sector purchasing managers' indices from October will be due out on Tuesday session: the S&P Global services PMI due at 0845 ET is expected to have held steady at 55.3, while the ISM services PMI is forecast to have slowed to 53.8 from 54.9.