Global stocks fall as traders look ahead to US presidential election

Wall Street ended the day in the red after the FTSE 100 (^FTSE) and European stocks closed lower on Wednesday. Investors are anticipating the upcoming autumn budget in the UK and are considering the chances of Donald Trump winning next month’s US presidential election.

Global stocks fell

Global stocks fell for the second consecutive session on Tuesday, with U.S. yields rising amid uncertainty surrounding the upcoming election and interest rate cut forecasts.

A Reuters/Ipsos poll showed Democratic Vice President Kamala Harris leading former Republican President Donald Trump slightly, with 46% to 43%, as both candidates aim for key swing states ahead of November 5.

The benchmark S&P 500 and Dow closed lower in volatile trading, primarily due to declines in industrials, materials, and utilities stocks. Meanwhile, the Nasdaq rose as investors evaluated corporate earnings from various sectors.

The Dow Jones Industrial Average dropped 0.02% to 42,924.89, the S&P 500 decreased 0.05% to 5,851.20, and the Nasdaq Composite gained 0.18% to 18,573.13.

In Europe, the pan-European STOXX 600 index fell 0.21%, and MSCI's global stock index decreased by 0.29% to 851.14.

David Spika, chief markets strategist at Turtle Creek Wealth Advisors, commented, "Rising yields present a significant challenge. We’re witnessing the largest increase in the 10-year yield post-rate cut in 30 years. The bond market suggests we shouldn’t expect a wave of rate cuts anytime soon; it’s unrealistic to think the Fed will cut rates by 50 basis points at every meeting."

Trump accuses Labour of interfering in US election

Donald Trump’s presidential campaign has officially accused Sir Keir Starmer’s “far-left” Labour Party of interfering in the US election in a striking move.

The Trump-Vance campaign submitted a complaint to the US Federal Election Commission (FEC), alleging that Labour engaged in illegal foreign campaign contributions. This follows reports of numerous Labour activists, including prominent politicians, traveling to the US to support Kamala Harris's campaign ahead of the election on November 5.

In a statement, Trump campaign co-manager Susie Wiles asserted, “The far-left Labour Party has inspired Kamala’s dangerously liberal policies and rhetoric. Recently, they have sent party members to campaign for Kamala in key battleground states, trying to influence our election.”

Main indexes finished lower

The main indexes finished lower as market volatility continued to weigh on investor sentiment. The Dow Jones Industrial Average slipped slightly, influenced by declines in industrial and utility sectors. The S&P 500 also experienced a minor drop, reflecting losses across various sectors, particularly materials.

In contrast, the Nasdaq managed to close slightly higher, buoyed by strong earnings reports from key tech companies. Overall, uncertainty surrounding the upcoming U.S. election and interest rate forecasts contributed to a cautious trading atmosphere. As investors digest economic indicators and corporate earnings, market fluctuations are expected to persist in the near term.

On Wall Street, all three main indexes finished lower, driven by losses in consumer discretionary, technology and communication services stocks. Real estate and utilities were the biggest gaining sectors.

The Dow Jones Industrial Average fell 0.96% to 42,514.95, the S&P 500 fell 0.92% to 5,797.42 and the Nasdaq Composite fell 1.60% to 18,276.65.

The MSCI All-World index lost 0.79%, while in Europe, the STOXX 600 finished down 0.30%.

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