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Stock index futures point to a lower open Wednesday as investors digest results available so far from the midterm elections.
S&P futures (SPX) -0.2%, Dow futures (INDU) -0.2% and Nasdaq 100 futures (NDX:IND) -0.2% are lower.
Control of Congress is yet to be determined. The GOP looks to be closing in on winning the House, but as red wave did not materialize.
“Neither side seems to be ‘waving’, and any majority in Congress is likely to be modest,” UBS chief economist Paul Donovan said. “For markets that means few changes that matter.”
Market attention will soon be turning from the election to inflation with CPI on tap for Thursday.
The 10-year Treasury yield (US10Y) is up 2 basis points to 4.14%. The 2-year yield (US2Y) is flat at 4.67%.
“On that inflation figure, with seven of this year’s prints having beaten economists’ expectations, it seems likely that many market participants are positioned for an upside surprise once more,” Caxton’s Michael Brown wrote. “Such a surprise poses a sharp upside risk to Treasury yields, and should be another nail in the coffin of the idea that the Fed make a dovish pivot any time soon.”
The crypto selloff continues, with bitcoin down 10% amid the FTX-Alameda drama.
Among active issues, Tesla is lower after Elon Musk sold $4B in stock. Disney is also down following a miss on the top and bottom lines.
