US stock futures rose Monday, kicking off a packed week with congressional midterm elections and key inflation data over the next few days.
Dow Jones Industrial Average futures traded 106 points higher, or 0.3%. S&P 500 and Nasdaq 100 futures were up 0.3% and 0.3% respectively.
Those gains came despite Apple’s drop of more than 1% after the tech company said iPhone production was temporarily reduced due to Covid-19 restrictions in China. on the other hand, Palantir Sales were slightly above expectations but below earnings expectations, down approximately 2% in premarket.
Tuesday’s midterm elections will determine which party controls Congress and influence the direction of future spending. Democrats now control the House and hold a majority in the Senate. According to RBC’s Lori Calvasina, investors may acknowledge the deadlock that can result from the midterm elections, as a Republican or Democratic president with a split Congress has historically meant above-average earnings.
“[The] This historical data confirms the conventional wisdom that stock markets love political turmoil,” Calvasina wrote in a note Monday.
On the economic front, investors expect Thursday’s CPI report to give more insight into the Federal Reserve’s efforts to curb inflation. A hot inflation report could suggest to investors that the long-term reversal from rising interest rates could be more distant than expected.
“[In] Inflation must continue to fall for the stock and bond markets to match the post-peak inflation rates shown in the table. The situation could remain difficult until the Federal Reserve indicates a ‘pivot’ is coming,” Baird’s Ross Mayfield wrote in a recent note.
Wall Street is ending a strong session as the Dow is up 400 points (1.3%). The S&P 500 and Nasdaq Composite were also up more than 1% each. Still, the leading average closed the week with a loss. Fears of rate hikes have halted the Dow’s four consecutive weeks of gains.
Elsewhere, several companies are due to report on Monday. activision blizzard, lift When take-two interactiveWith most companies in the S&P 500 reporting results, corporate earnings season is coming to an end.
