US stock futures were mixed on Tuesday as Americans headed to the polls for midterm elections, with Apple and Palantir declining after earnings that failed to satisfy investors.
Dow Jones futures were down about 290 points or 0.6% and S&P 500 contracts slipped 0.08%, while Nasdaq 100 futures edged above unchanged levels.
The cautious mood followed Monday’s session, when the Nasdaq Composite lost 1.07% and the S&P 500 fell 0.51%.
5 things to know before Wall Street opens
1. US midterm elections put Wall Street on edge
The elections will determine control of Congress and could reshape President Donald Trump’s legislative agenda.
Democrats are favoured to win the House, while Senate races remain competitive. Standard Chartered strategist Steve Englander suggested investors may prefer divided government, which could constrain major fiscal changes.
An unexpected Republican sweep might lift bond yields and the dollar on expectations of increased spending.
2. Apple and Palantir fall despite strong earnings
Apple shares weakened after the iPhone maker reported fiscal fourth-quarter revenue of $114.5 billion, up 12%, but forecast December-quarter gross margins of 45%–46%, below September’s 47.9%.
Rising memory-chip costs are threatening profitability despite strong handset sales. Palantir also declined despite a 96% jump in revenue to $2.31 billion.
Its total contract value increased just 6% from a year earlier, raising questions about future deal momentum.
3. AMD earnings could determine the next move for AI stocks
Advanced Micro Devices reports after Tuesday’s closing bell, offering another test of enthusiasm for AI infrastructure.
Analysts expect roughly $13.1 billion in quarterly revenue and adjusted earnings of $1.95 a share.
Morgan Stanley’s Joseph Moore, in analysis covered by TipRanks, maintained a Hold rating despite lifting his price target to $510.
He expects strength in server processors to offset softer PC demand but remains cautious about competition and supply constraints.
4. Oil rebounds as US-Iran tensions threaten inflation
Crude prices recovered as hopes of a breakthrough in US-Iran negotiations faded. Brent rose 1.76% to $106.61 a barrel by 07:44 GMT, while US crude gained 1.66% to $98.06, reversing part of Monday’s drop of more than 7%.
US officials confirmed strikes on Iran’s Qeshm Island near the Strait of Hormuz, a vital shipping route.
Further escalation could raise transport and fuel costs, hurting airlines and consumers while supporting energy producers.
5. US job openings data could reshape Fed rate expectations
September’s Job Openings and Labor Turnover Survey is due at 10 am Eastern Time, with economists forecasting about 7.1 million vacancies.
Factory orders are scheduled for the same hour. Strong hiring demand could reinforce expectations that the Fed will keep rates restrictive after holding them at 3.75%–4% last week.
A weaker reading could revive hopes that labour-market cooling will limit further tightening.
The post Dow futures plunge 290 points: 5 things to know before Wall Street opens appeared first on Invezz
