Trump And Harris head for tight presidential election
Investors were on edge as recent polls showed Donald Trump and Kamala Harris were neck-and-neck in the upcoming presidential election, with he results likely to dictate trade and tax policies over the course of the next four years.
While earlier polls had shown Trump gaining some ground over Harris, this trend appeared to have reversed going into the election.
Trump is expected to roll out more inflationary policies and impose tougher trade tariffs on China- a scenario that could bode poorly for the big tech sector, while Harris has proposed increased taxes on high net worth individuals and big businesses, while easing the tax burden on families.
Fed set to cut interest rates
Also limiting activity Tuesday is the proximity to Thursday's Federal Reserve policy-setting meeting, with the central bank widely expected to cut rates by 25 basis points, after a 50 bps cut in September.
Recent data showing sticky inflation and strength in the U.S. economy have cast some doubts over just how much interest rates will fall in the coming months, given that the Fed has signaled a data-driven approach to any further easing.
Still, weak nonfarm payrolls data released on Friday showed the labor market was cooling, which could keep the Fed biased towards more easing.
Focus will be squarely on an address by Chair Jerome Powell on the bank’s plans for future rate cuts. (cay)
Source: Investing.com
