Stock Market Today: Election Results Continue to Ease Market Fears
Tech is snapping back after a brutal week while blue chips slip, and everyone is watching the clock for 2 p.m. ET. Will the Fed's statement keep the bounce alive, or erase it before the close?
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Tech stocks are bouncing ahead of the opening bell while blue chips lag. Before the bell, the fund that tracks the Nasdaq-100 was up 1.4%, the S&P 500 tracker was up 0.1%, and the Dow tracker was down 0.9%. The rebound comes after the Nasdaq-100 fund fell 8% in a week, and the session leads into the Federal Reserve’s 2 p.m. ET policy statement.
| Gauge | Reading |
|---|---|
| S&P 500 (ETF proxy, premarket) | +0.1% |
| Nasdaq-100 (ETF proxy, premarket) | +1.4% |
| Dow (ETF proxy, premarket) | -0.9% |
| VIX (Wednesday close) | 17, down 4 |
Why Growth Buyers Are Returning Before the Fed
Growth stocks have taken the worst of the selling. Over the past month, the Nasdaq-100 fund lost 14%, compared with 6% for the S&P 500 fund.
Two pressures have relieved. The 10-year Treasury yield slipped to 4.9% on Wednesday, its lowest level in a month and down from 5.3% in early October. The VIX fell back into its normal range after closing at 21 on Monday.
Oil is helping too. WTI oil was about $100 on Tuesday, below its $110 October peak. Lower crude eases inflation pressure, and that matters to a Fed that raised rates in September.
Refiners and Infrastructure Earnings Moving Early
Delek US Holdings (NYSE:DK) reported adjusted EPS of $13.55, well ahead of the $8.12 estimate. EPA small refinery exemptions cut costs by $334.7 million, so regulation did part of the work. Shares rose 4% to about $65.
Calumet (NASDAQ:CLMT) beat expectations with EPS of $2.91, yet shares slipped 2%. That adds to a 25% one-month drop.
Brookfield Infrastructure Partners (NYSE:BIP | BIP Price Prediction) posted FFO of $0.91 per unit, ahead of the $0.83 estimate, but units fell 2%. Sister company Brookfield Asset Management (NYSE:BAM) rose 1%.
What This Split Session Means for Your Money
A one-day pop in tech after a sharp weekly drop looks more like relief than a confirmed turn. Year to date, the Nasdaq-100 fund is up 7%, now behind the S&P 500 fund’s 8%. If your portfolio leans on mega-cap tech, this month’s swings show how much concentration risk you carry. Calumet and Brookfield Infrastructure falling after beats shows the market is setting a high bar for earnings right now.
Fed Statement Could Reset the Afternoon
After the 2 p.m. ET release comes consumer credit data at 3 p.m. Pay attention to whether the Fed keeps tending toward more hikes. The 10-year yield’s reaction will decide whether tech’s early bounce holds up into the close.
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After two decades of patrolling the dark corners of suburbia as a police officer, Rich Duprey hung up his badge and gun to begin writing full time about stocks and investing. For the past 20 years, he’s been cruising the markets looking for companies to lock up as long-term holdings in a portfolio while writing extensively on the broad sectors of consumer goods, technology, and industrials. Because his experience isn’t from the typical financial analyst track, Rich is able to break down complex topics into understandable and useful action points for the average investor. His writings have appeared on The Motley Fool, InvestorPlace, Yahoo! Finance, Money Morning, and, of course, 24/7 Wall St. He has been featured in both U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, and USA Today.
