Wall Street closed higher one day before the US legislative elections

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The New York trading floor welcomed the projections that give the Republican Party the favorite to control, at least, the House of Representatives

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Wall Street closed higher one day of the legislative elections in the US

The New York Stock Exchange closed higher one day before the mid-term elections in the US (AFP)

The New York Stock Exchange finished positive this Monday before the mid-term legislative elections in the United States, which, according to the latest projections, could end the control of the Democrats in Congress.

The Dow Jones index gained 1.31% to 32,827.00 points, while the technological Nasdaq gained 0.85% to 10,564.52 units, and the S&P 500 rose 0, 96% at 3,806.80 points.

Americans vote on Tuesday to determine the balance of powers in Congress. And after a campaign focused on inflation, Republicans are increasingly confident of winning a majority in the Legislature.

Polls estimate a clear victory for Republicans in the House of Representatives, meanwhile, could also retake control of the Senate.

The New York parquet began the day with optimism and accelerated gains due to expectations that the Republican Party will advance positions in the mid-term elections on Tuesday. Currently, the Democratic Party controls the presidency of the country, the Congress and the Senate, but the majority in the legislative chambers could go to the Republican side, thus putting an end to the “blue wave” that accompanied the president Joe Biden in the presidential election.

In this case, the government could experience some paralysis, and that seems to please the market.

“The consensus is that a government divided between the White House and Congress will lead to more political blockades and a moderation of President Joe Biden's programs,” summarized Art Hogan, of B. Riley Wealth Management.

Historically, Wall Street prefers a Congress and a White House with different parties in charge, as this tends to block bills that could be unfavorable to the market.

However for Karl Haeling, of LBBW, Wall Street's optimism “is explained less by the expectation of a Republican victory than by the idea that the elections will be over.”

Wall Street closed ; on the rise one day before the legislative elections in the US

Americans will vote this Tuesday for the new conformation of the US Congress (EFE/Jim Lo Scalzo)

“In general, the stock market is doing well at the end of the year after the mid-term elections,” the analyst remarked.

“I don't think it matters who wins or loses, as long as we put the elections behind us,” concluded Haeling.

This week the CPI consumer price index will be released on Thursday. Analysts forecast a month-over-month increase of 0.5% in October after 0.6% between August and September.

Among the values ​​of the day, Meta (Facebook) gained 6.53% after The Wall Street Journal reported that it will lay off thousands of people. Mark Zuckerberg's company stock was one of the biggest losers among members of the S&P 500, losing 70% of its value in 12 months.

Tesla it lost 5.01% to $197.08, as Elon Musk faces difficulties with his reforms at Twitter, a company for which he paid $44 billion.

By sectors, gains predominated and were led by communications companies (1.83%), energy (1.73%) and technology (1.64%), while the most affected were those of public services (-1 .94%).

Among the 30 Dow Jones listed companies, Walgreens' 4.10% gain stood out in reaction to the news that one of its subsidiaries agreed to buy the chain of medical and emergency centers Summit Health for some 8.9 billion dollars.

Salesforce (3.46%), Boeing (3.14%) and Amgen (2 .97%) compared to the losses of Nike (-2.46%), 3M (-0.10%) and Verizon (-0.08%).

In other markets, Texas oil fell to $91.79 a barrel, and at the close of Wall Street the 10-year Treasury bond yield rose to 4.22%, gold rose to $1,677.70 an ounce and the dollar fell terrain against the euro, with an exchange rate of 1.0021.

With information from AFP and EFE