The New York Stock Exchange closed mixed as investors adopted a cautious stance ahead of the upcoming US presidential election, with the Dow falling by 0.61% and the Nasdaq rising by 0.56%. Uncertainty surrounding the election and rising bond yields contributed to a holding pattern in the market. The tech sector, led by strong performances from companies like Tesla and Alphabet, contrasted with declines in traditional stocks, notably McDonald’s, affected by a food safety crisis.
The New York Stock Exchange wrapped up trading on Friday with mixed results as investors remained cautious ahead of the impending US presidential election, without any fresh incentives to drive market decisions. The Dow Jones fell by 0.61%, while the Nasdaq gained 0.56%. The broader S&P 500 index concluded the day nearly unchanged, dipping just 0.03%. “The market is currently in a holding pattern,” noted Karl Haeling from LBW, “as participants are less inclined to take risks due to the prevailing uncertainty.” The two primary candidates are closely matched in nationwide polls, particularly in crucial states like Georgia, Pennsylvania, and Wisconsin.
Following a drop in bond yields on Thursday, Wall Street experienced another rise in yields on Friday. The yield on US government bonds increased to 4.23%, up from 4.21% the previous day. “It’s essential to monitor the government deficit and its potential impact on bond yields and the demand for US Treasuries,” remarked Meghan Shue of Wilmington Trust, “as the budget outlook remains concerning, regardless of the election results.” Assessments by independent analysts suggest that both Republican candidate Donald Trump and Democratic contender Kamala Harris would contribute to an increase in public debt.
McDonald’s Faces Health Crisis
The New York market also missed the momentum typically generated by corporate earnings reports, which were notably scarce on Friday. Investors lacked leading indicators to drive their decisions. The technology sector stood out, particularly Tesla, which surged by 3.34%, buoyed by positive performance revealed earlier in the week. Major tech firms, including Alphabet, which gained 1.50%, all closed higher. Waymo, a subsidiary of Alphabet specializing in autonomous driving, successfully raised $5.6 billion for its expansion efforts, maintaining its lead in the driverless cab market, far ahead of Tesla, whose robotaxi service is not projected to launch until 2026.
In just a few moments, Nvidia regained its status as the world’s highest-valued company, temporarily surpassing Apple, which rose by 0.36% before regaining its lead. Another semiconductor leader, Qualcomm, increased by 1.29%, while AMD climbed by 1.82%. However, this positive momentum in tech was overshadowed by the Dow Jones, which faced its fifth consecutive day of losses, following numerous record highs. The Dow’s decline was particularly influenced by McDonald’s, which dropped 2.97% due to ongoing fallout from a series of Escherichia coli infections linked to its hamburgers, resulting in one death and 75 illnesses. The downward trend wasn’t isolated to McDonald’s; many legacy stocks also suffered, including declines in Goldman Sachs (-2.27%), Dow Inc. (-2.53%), and Travelers (-2.31%).
A significant challenge arose for Capri Holdings, whose shares plummeted by 48.89% after the news broke that its proposed acquisition by rival Tapestry had been halted. Investors had hoped Tapestry’s involvement would help turnaround Capri, strained by the struggles of its flagship brand, Michael Kors. Meanwhile, Colgate-Palmolive’s stock dipped by 4.14%, despite reporting better-than-expected earnings and raising annual forecasts, as investors were more concerned about the decline in sales in North America and Latin America.