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The benchmark S&P 500 ended slightly lower and closed the week down nearly 1 per cent, driven by losses in utilities and financials as well as gains in technology and communication-services stocks. Nasdaq finished the week higher.
Published: 26 Oct 2024 07:46:AM
Traders are pricing in near-95 per cent odds of a 25-basis-point cut at the Fed’s November meeting, according to the CME Group’s FedWatch Tool. (Reuters image)
New York: Global stocks slipped on Friday, finishing the week lower amid U.S. election jitters, while oil prices rose due to concerns about fighting in the Middle East.
Republican former President Donald Trump and Democratic Vice President Kamala Harris are polling neck-and-neck in crucial swing states ahead of the Nov. 5 election. Investors are anxious about a contested result roiling world markets and unleashing fresh geopolitical uncertainty.
The benchmark S&P 500 ended slightly lower and closed the week down nearly 1 per cent, driven by losses in utilities and financials as well as gains in technology and communication-services stocks. Nasdaq finished the week higher.
The Dow Jones Industrial Average fell 0.61 per cent to 42,114.40, the S&P 500 eased 0.03 per cent to 5,808.12 and the Nasdaq Composite rose 0.56 per cent to 18,518.61.
The European shares index ended down 0.03 per cent after giving up gains in choppy trading and finished 1.2 per cent lower for the week. Overnight in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan closed lower by 0.02 per cent but dropped nearly 2 per cent for the week.
“The market is still somewhat choppy and part of that is we were up six weeks in a row and up 10 out of 11 months and right now the market, after that big run, is facing these interest rates that are staying a little bit higher,” said Keith Lerner, co-chief investment officer at Truist Advisory Services in Atlanta.
“Historically, the volatility in an election year tends to spike in October. We haven’t seen a spike, but it’s very normal for markets to get more jittery into the election.”
Brent crude futures settled up 2.25 per cent at $76.05 a barrel. U.S. West Texas Intermediate crude settled up 2.27 per cent to $71.78. Both crude futures finished the week up about 4 per cent.
U.S. Treasury yields edged higher as investors wait on key employment data next week for fresh clues on the likely path of Federal Reserve interest-rate cuts.
Traders are pricing in near-95 per cent odds of a 25-basis-point cut at the Fed’s November meeting, according to the CME Group’s FedWatch Tool. The yield on benchmark U.S. 10-year notes rose 3.8 basis points to 4.24 per cent.
The dollar advanced and was set for a fourth weekly gain against Japan’s yen, as an uncertain backdrop for markets sent the yen near three-month lows ahead of an election in Japan over the weekend.
The dollar strengthened 0.26 per cent against the yen to 152.22. Against the Swiss franc, the dollar strengthened 0.08 per cent to 0.866. The euro, however, was down 0.29 per cent at $1.0796. Sterling weakened 0.08 per cent to $1.2961.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro,rose 0.24 per cent to 104.30.
Gold prices rose in choppy trading after retreating from record highs. Spot gold rose 0.28 per cent to $2,743.31 an ounce. U.S. gold futures settled 0.2 per cent higher at $2,754.60. Prices had hit an all-time high of $2,758.37 on Wednesday.
“Over time, interest rates, inflation and the economy are the leading factors that affect the stock market,” said Tom Plumb, CEO and portfolio manager at Plumb Funds in Madison, Wisconsin.
“But in the short run, there’s no question that this is a market being bounced around by political developments and expectations, and the general perception that Trump would be better for the markets than Harris.”
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