US benchmark equity indexes closed lower Monday amid the anticipation of the presidential election and the Federal Reserve's latest monetary policy decision later in the week. The Dow Jones Industrial Average declined by 0.6% to 41,794.6, while both the S&P 500 and the Nasdaq Composite fell by 0.3% each, closing at 5,712.7 and 18,180, respectively.
Utilities registered the steepest losses among sectors, whereas energy led the gains. The US presidential election is set for Tuesday, with Democratic Party nominee and US Vice President Kamala Harris facing Republican Party nominee and former US President Donald Trump. The central bank's Federal Open Market Committee will hold its two-day meeting starting Wednesday.
Analysts anticipate policymakers will lower the benchmark lending rate by 25 basis points on Thursday, as evidenced by data from the CME FedWatch tool. "Given that the meeting will come on the heels of the election, there will likely be questions about its implications," Macquarie stated in a note to clients on Monday.
"Should Trump emerge as the victor, these would likely focus on the threatened tariffs, fiscal policy, and Fed independence." The US 10-year yield experienced a decrease of 6.4 basis points to 4.3%, while the two-year rate saw a decline of 3.1 basis points to 4.17%. In corporate news, Constellation Energy ($CEG) shares plummeted nearly 13%, making it the worst performer on both the S&P 500 and the Nasdaq, after Mizuho adjusted its price target on the stock from $264 to $235, maintaining a neutral rating.
Constellation Energy announced its Q3 financial results and updated its full-year earnings outlook on Monday. Intel ($INTC) faced the most significant drop on the Dow and the second-largest on the Nasdaq, falling by 2.9%. On Friday, S&P Global ($SPGI) noted that Nvidia ($NVDA) would take Intel's place on the Dow effective Nov.
8; Nvidia shares closed 0.5% higher on Monday. Salesforce ($CRM) shares gained 1%, being the best performer on the Dow, following an adjustment by Evercore ISI of its price target on the stock from $300 to $400. Freshpet ($FRPT) raised its full-year sales and core profit forecasts as the pet food company reported Q3 earnings that exceeded expectations, driven by double-digit volume growth.
The company’s shares surged by 13%. West Texas Intermediate crude oil prices increased by 3.2% to $71.68 per barrel, with prices rising after the Organization of the Petroleum Exporting Countries (OPEC) and its allies decided to delay a planned increase in oil production by one month, as reported by D.A.
Davidson. Gold prices decreased by 0.1% to $2,746.70 per troy ounce, while silver fell by 0.2% to $32.63 per ounce..