US stock futures surge as Trump pulls ahead of Harris

U.S. stock index futures rose on Wednesday as early voting showed Donald Trump pulling ahead of Kamala Harris in the 2024 presidential election, with the Republicans also set to sweep the Senate and the House.

Futures extended gains after Wall Street rose sharply on Tuesday, buoyed by a rebound in technology stocks from recent losses, while other sectors were encouraged by stronger-than-expected purchasing managers index data for October. 

Markets were also positioning for a widely expected interest rate cut by the Federal Reserve on Thursday. 

S&P 500 Futures rose 1.2% to 5,882.75 points, while Nasdaq 100 Futures rose 1.2% to 20,578.75 points by 00:53 ET (05:53 GMT). Dow Jones Futures rose 1.3% to 42,943.0 points. Trump leads Harris with wins in NC, Georgia

Coverage by local networks and the Associated Press showed Trump trending well ahead of Harris with wins in key battleground states North Carolina and Georgia.

Trump was also seen leading in other key swing states, including Pennsylvania, Michigan, Arizona and Nevada.

Trump held 247 electoral votes, while Harris stood at 210 votes. The Republican candidate was now just 23 votes away from winning the presidency. Republicans set to sweep the Senate, House

The Republican party won a majority in the Senate, and were seen on course to also win the House of Representatives.

A Republican sweep in Congress presents a much easier path for Trump to enact major policy changes. Trump is widely expected to enact more inflationary policies, given his largely protectionist stances on immigration and trade.

The dollar and Treasury yields shot up on this notion, with the greenback hitting a near four-month high.

A swift conclusion to the 2024 elections also presents the clearing of a major point of uncertainty for stock markets, with equities expected to broadly rally in the immediate aftermath of the elections. Wall St upbeat on tech rebound, Fed watch 

Wall Street indexes rose sharply on Tuesday, recovering from recent losses on gains in technology stocks. Anticipation of a rate cut by the Fed also factored into some risk appetite.

The S&P 500 rose 1.2% to 5,782.76 points, while the NASDAQ Composite rose 1.4% to 18,438.62 points on Tuesday. The Dow Jones Industrial Average rose 1% to 42,221.88 points. 

All three indexes were nursing a tumble from record highs in late-October following a mixed batch of mega-cap tech earnings, while uncertainty over future interest rate cuts by the Fed also weighed.

The central bank is widely expected to cut interest rates by 25 basis points at the conclusion of a two-day meeting on Thursday. 

Any signaling on the Fed’s plan for future rate cuts will be closely watched, given recent signs of stickiness in U.S. inflation. The central bank has signaled a largely data-driven approach to future easing. 

Source: Investing.com