S&P 500 and Stock markets Retreat on US Election Risks

Despite declining Treasury yields, S&P 500 and U.S. stock futures failed to hold gains as large-cap tech stocks dragged the market down.

Written by: Skerdian Meta • Monday, November 4, 2024 • 1 min read

• Last updated: Monday, November 4, 2024

Despite improved risk sentiment and declining Treasury yields, S&P 500 and U.S. stock futures failed to hold gains as large-cap tech stocks dragged the market down. The U.S. Treasury auctioned $58 billion in 3-year notes at a high yield of 4.152%, but investor caution increased due to market uncertainty surrounding the upcoming U.S. presidential election.

US indices finished lower again today

Concerns Over Tech Sector Resiliency

Major indexes reflected this sentiment: the Dow dropped 257 points (-0.6%), the S&P fell 16 points (-0.3%), and the Nasdaq declined 560 points (-0.2%). Last week’s weaker-than-expected earnings reports raised doubts about the tech sector’s strength. Once a primary driver of market gains, large-cap tech is now pressuring stock indices, and these disappointing results, combined with economic and political challenges, may signal further downside risk for the sector.

Closing Levels for Main US Indices

Dow Jones Industrial Average: -257.60 points (-0.61%) at 41,794.60
S&P 500: -16.11 points (-0.28%) at 5,712.69
Nasdaq Composite: -59.93 points (-0.22%) at 18,179.98
Russell 2000 (Small Cap): +8.90 points (+0.40%) at 2,219.03

Heightened Geopolitical and Economic Uncertainty Weigh on US Indices

In addition to economic concerns, geopolitical uncertainties are growing, particularly in the Middle East. Investor caution has been amplified by increased tensions following recent actions by Israel, underscoring the global impact of both political and economic instability on market sentiment.

Key Details of the U.S. Treasury 3-Year Note Auction

Auction Amount: $58 billion of 3-year notes
High Yield: 4.152%
When-Issued (WI) Level at Auction: 4.143%
Tail: 0.9% (compared to the 6-month average of -0.2%)
Bid-to-Cover Ratio: 2.60x (6-month average: 2.57x)

Participation by Buyer Type

Direct Bidders: 9.6% (below 6-month average of 15.7%)
Indirect Bidders: 70.6% (above 6-month average of 66.5%)
Dealers: 19.75% (above 6-month average of 15.76%)

Auction Grade: D+

S&P 500 Live Chart

S&P500

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.