Traders work on the floor of the New York Stock Exchange (NYSE) on October 27, 2022 in New York City. Stocks continued their upward gains on Thursday, with the Dow rising nearly 400 points following a new GDP report that beat expectations.
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Stock futures were lower — following recent market gains — as a result Mid-term elections Took control of the US House of Representatives and Senate.
S&P 500 futures fell 0.22%, while Dow futures shed 90 points. Futures for the Nasdaq 100 traded fractionally lower.
Shares are coming off three straight days of gains, so a pause could be due. The Dow rose 333 points on Tuesday, its third straight session of gains of more than 1%. The rise in stock markets can be attributed in part to the elections in Washington, D.C., which were expected to be won by Republicans on Wall Street.
But control of the Houses of Congress has so far not been clear overnight.
Morgan Stanley’s chief U.S. equity strategist, Mike Wilson, told CNBC’s “The closing bell“If it ends up being a divided government, that will help ease concerns about inflation and higher interest rates going forward.
“It looks like the House Republicans are going the way,” Wilson said. “That means gridlock. Perhaps, lower financial costs will be achieved.”
The market’s recent upswing occurs on the front end of a strong seasonality. Historically, stocks rise after midterm elections and the policy clarity it brings, and the final two months of the year are considered a good time for investors.
One stock weighing on the future was Disney, which fell more than 6% in extended trading after the entertainment giant missed estimates on its top and bottom lines. Fiscal fourth quarter.