New York: On Election Day 2024, US stock markets showed early gains as Americans headed to the polls. The S&P 500 rose by 0.4%, bringing it closer to a record, while the Dow Jones Industrial Average increased by 66 points, or 0.2%. The Nasdaq composite also climbed by 0.6%, buoyed by ongoing excitement in the artificial intelligence (AI) sector and positive earnings from some key companies.
A standout performer was Palantir Technologies, which saw a 16.7% jump after surpassing analysts’ profit and revenue expectations. CEO Alexander Karp expressed confidence in the company’s growth, stating, “We absolutely eviscerated this quarter, driven by unrelenting AI demand that won’t slow down.” The company’s strong earnings reflect growing investor enthusiasm for AI, which has been a driving force behind market gains over the past year.
Boeing also posted a modest gain of 0.1% after its factory workers voted to accept a new contract offer. The deal ended a 53-day strike, allowing the aerospace giant to resume production at its assembly lines in the Pacific Northwest. This resolution brings relief to Boeing, which can now focus on meeting demand for its popular airliner.
In contrast, Wynn Resorts saw a decline of 5.2% after its quarterly earnings failed to meet analyst expectations. The dip highlighted the mixed performance across industries, even as the broader market remains hopeful amid Election Day anticipation.
Despite the stock market’s positive start, uncertainty surrounding the election outcome remains a concern. The winner may not be known for days or even weeks, depending on how long vote counting takes. Such unpredictability, coupled with an upcoming Federal Reserve meeting on interest rates, could lead to market fluctuations. Analysts widely expect the Fed to cut its main interest rate for the second consecutive time, which could provide further support to the market.
Historically, the stock market tends to perform well regardless of which party wins the presidency. Data from CFRA shows the S&P 500 has risen in 73% of years under Democratic presidents and 70% of years under Republican presidents since 1945. Notably, stock market gains have generally been higher under Democratic administrations, partly due to market downturns during Republican terms, such as the economic challenges faced under George W. Bush.
Beyond the presidency, investors are closely watching for signs of a split Congress. A divided government is often viewed as favorable for the stock market, as it tends to prevent major policy shifts and maintain a stable economic environment. Some investors are also mindful of the possibility of a contested election result, which could lead to market volatility. In the 2000 election, for instance, the S&P 500 dropped 5% over five weeks as results were contested.
Global markets displayed mixed results on Election Day. European and Asian indexes mostly saw modest moves, although Shanghai and Hong Kong surged with gains of 2.3% and 2.1%, respectively. Meanwhile, the yield on the 10-year Treasury increased slightly, reaching 4.31%.
As Americans cast their votes, the stock market remains cautiously optimistic, with analysts advising a long-term focus on corporate performance and economic fundamentals rather than short-term political uncertainty.
