FPG US Stock Market Report November 6

FPG U.S. Stock Market Report November 6

U.S. stock futures edged higher, with early election results and the Fed’s policy decision attracting attention

U.S. stock futures edged higher on Wednesday as preliminary results of the U.S. presidential election began to emerge after polling stations were closed in several states. Former President Trump currently leads the electoral vote with 95, while Vice President Kamala Harris has 35 electoral votes. The market is highly concerned about the ownership of control of Congress, which will have a profound impact on future fiscal spending and tax policy. Meanwhile, investors await the Fed’s policy decision this week, with the Fed widely expected to announce a 25 basis point rate cut in response to uncertainty in the economic environment.

The previous day’s market performance
•⁠ ⁠Dow Jones: up 1.02%, buoyed by pre-election confidence.
•⁠ ⁠S&P 500: Up 1.23%, with gains in all sectors.
•⁠ ⁠Nasdaq Composite: up 1.43%, led by tech stocks.

In terms of sectors, the Consumer Goods, Industrials, Utilities and Technology sectors performed strongly. Palantir Technologies and Astera Labs rose 23.5% and 37.7%, respectively, mainly due to strong quarterly results.

Market drivers

1.⁠ ⁠Presidential Election and Congressional Control: Investors are keeping a close eye on the outcome of the election, especially whether there will be a one-party dominance in the composition of Congress, which will affect subsequent fiscal policy and technology regulation.
2.⁠ ⁠Fed Policy Expectations: Against the backdrop of broad expectations that the Fed will cut interest rates slightly, investors are paying attention to the Fed’s statement on the future policy path.
3.⁠ ⁠Performance support: A number of companies released strong financial reports, which boosted market confidence and drove the major stock indexes to rise collectively.

Market outlook

•⁠ ⁠Post-election market sentiment: The outcome of the election and the composition of the Congress will determine the market’s expectations for future spending and tax policy, which may affect the direction of investment in a number of sectors.
•⁠ ⁠Fed Interest Rate Decision and Statement: The Fed’s views on inflation and the job market will influence the direction of monetary policy, especially in interest rate decisions.
•⁠ ⁠Corporate Earnings and Economic Data: Investors will continue to closely monitor public company earnings reports and the PCE price index released on Thursday to assess overall economic performance.

Investment strategy advice

Investors are advised to maintain a moderately defensive portfolio in the current uncertain environment, focusing on assets with stable cash flows and low volatility. At the same time, we will actively pay attention to fiscal expenditure and policy trends to cope with possible market fluctuations in the future.

20,294 points of resistance above the first line and 20,650 points of resistance above the second line,
The lower first line support is 19,928 points, and the lower second line support is 19,647 points.

Risk Disclaimer: This report is for informational purposes only and does not constitute financial advice. All investments involve risk and past performance is no guarantee of future results. Please consult your financial advisor for personalized investment advice.