U.S. Stock Futures Slip Ahead of First Trump and Biden Debate
September 29 2020 - 5:42AM
Dow Jones News
By Anna Hirtenstein
U.S. stock futures wobbled Tuesday ahead of the first debate
between President Trump and former Vice President Joe Biden before
the November presidential election.
Futures tied to the S&P 500 ticked down 0.1%, suggesting a
muted drop in stocks after the New York opening bell. The
broad-market index closed up 1.6% on Monday, rising for the third
straight day.
Volatility in markets is on the rise with the U.S. election
around the corner. The two candidates will face off at 9 p.m. ET in
Cleveland, Ohio, to discuss their respective records, the
coronavirus pandemic, the economy, race and violence. Other issues
are likely to be their views on mail-in voting, interference by
overseas interests and potential election fraud.
"People will read into this debate for answers to questions
about whether the results of the election will be accepted by
either side," said Tony Dalwood, chief executive officer of Gresham
House Asset Management. "If there's any uncertainty around this,
that will lead to volatility."
Investors are also continuing to assess the now-dimming
prospects for new additional spending to support the
government.
House Democrats released a $2.2 trillion-bill for a
coronavirus-relief package on Monday evening. House Speaker Nancy
Pelosi is likely to speak to Treasury Secretary Steven Mnuchin
about it on Tuesday morning. But the focus in Congress has turned
to the selection of a new Supreme Court justice, analysts said.
"A combination of the situation with the Supreme Court, and
Democrats being unwilling to hand Trump a major fiscal stimulus
just before the election, makes it quite unlikely that we'll see
something passed," said Sebastian Mackay, a multiasset fund manager
at Invesco.
Investors are also awaiting a gauge of U.S. consumer confidence
from the Conference Board, which will be out at 10. a.m. ET.
Consumer spending is the biggest driver of economic growth in the
U.S. The latest data could provide some insight into the
sustainability of the recovery in the absence of more government
support.
Overseas, the pan-continental Stoxx Europe 600 declined 0.5% as
coronavirus cases continued to rise, raising the risk of more
stringent measures being introduced by governments in the
region.
In Asia, major stock benchmarks were mixed by the close of
trading. The Shanghai Composite Index advanced 0.2% and Hong Kong's
Hang Seng Index slipped 0.9%.
The dollar held steady after weakening in recent days, with the
WSJ Dollar Index falling to the lowest level in nearly a week
against a basket of currencies.
In bond markets, the yield on the 10-year Treasury fell to
0.653%, from 0.661% on Monday.
Write to Anna Hirtenstein at anna.hirtenstein@wsj.com
(END) Dow Jones Newswires
September 29, 2020 05:27 ET (09:27 GMT)
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