U.S. stock futures wobbled Tuesday as investors awaited the outcome of two electoral races in Georgia that will determine control of the Senate.
Futures tied to the S&P 500 and the Dow Jones Industrial Average edged about 0.2% lower, pointing to muted declines after the New York opening bell. The major benchmarks tumbled sharply on Monday, after closing at record levels just days earlier.
Money managers are closely monitoring the Georgia Senate runoff elections Tuesday. If Democrats win both seats, that could make it easier for President-elect Joe Biden’s administration to pass new legislation.
Additional fiscal stimulus would be more likely if Democrats control Congress and the White House, and that could potentially give stocks another leg up, investors have said. But the prospect of tax increases and more regulation is also weighing on markets, they cautioned.
“The market loves status quo, gridlock, and that is almost where we are at the moment,” said Patrick Spencer, managing director of U.S. investment firm Baird. “There is fear of regulations on big tech and there’s fear of more taxes, but with a slim majority, you’re not going to get a lot of that.”
News – U.S. Stock Futures Edge Lower Ahead of Georgia Elections