U.S. stock futures traded mixed on Tuesday as voters are set to head to the polls for midterm election which could send ripples throughout capital markets.
As of 4:00 a.m. ET, Dow futures were down by 2 points, but indicated a slightly higher open of 17 points. Meanwhile, S&P 500 and Nasdaq futures traded mildly lower.
Focus is very much attuned to Tuesday’s midterm elections. The Democrats are broadly forecast to take the House while the GOP is expected to maintain its slim majority in the Senate. This outcome would likely be seen as positive for U.S. equity markets as, historically, stocks have made solid gains in the event of a government gridlock.
If Republicans maintains a majority in both chambers, it could lift stocks in the short term as it increases the likelihood of further tax cuts. Meanwhile, a so-called Democratic sweep could pressure stocks as it could result in a reversal of some of the policies passed by Trump administration to boost the economy in the near-term.