US stocks trade mixed as investors await results of Georgia runoff elections
- US stocks were mixed on Tuesday morning as investors awaited the results of the two runoff elections in Georgia that will determine which party controls the US Senate.
- Monday was the stock market’s first negative trading session to start a year since 2016, as investors nervously eyed rising coronavirus cases in the US and renewed lockdown restrictions in the UK. New York state also confirmed its first case of a new virus strain.
- Watch major indexes update live here.
US stocks were mixed on Tuesday morning as investors awaited the results of the two runoff elections in Georgia that will determine which party controls the US Senate.
John Stoltzfus, Oppenheimer’s chief investment strategist, said it appeared that the market had priced in a Republican victory in at least one of the elections. He predicted that the S&P 500 could fall by as much as 10% if Democrats flip the Senate.
“Increased uncertainty over taxes and spending could likely weigh on the equity market at least until the intentions of the Biden Administration are given greater definition as to what a new tax regime might look like and how much any expansion of the government and its services would cost,” Stoltzfus said in a note on Monday.
Monday was the stock market’s first negative session to start a year since 2016, as investors eyed increasing coronavirus cases. The UK announced a full national lockdown in England until at least mid-February to combat the surge in COVID-19 cases and a new strain of the virus. New York Gov. Andrew Cuomo said Monday that the state had confirmed its first case of the new strain.
Here’s where US indexes stood at 9:30 a.m. ET on Tuesday:
- S&P 500: 3,695.72, up 0.07%
- Dow Jones industrial average: 30,253.62, up 0.12% (37.16 points)
- Nasdaq composite: 12,704.27, up 0.12%
Read more: A crypto CEO breaks down why he would not be surprised to see Bitcoin and Ethereum rise at least 100% in 2021 – and says the current sell-offs are a ‘very natural and healthy thing’
The billionaire fund manager Bill Ackman’s Pershing Square delivered a 70% return on its investments in 2020, breezing past the benchmark S&P 500’s 16% gain for the year and surpassing its record of 58% set in 2019.
Twitter founder Jack Dorsey published an open letter on Monday attacking proposed US government regulation that would require companies to collect the names and addresses of people making large cryptocurrency transactions. The regulation is designed to make it easier for law enforcement to track illicit transactions, but Dorsey said it would have the opposite effect.
Oil prices were higher. West Texas Intermediate crude rose 2.44%, to $48.78 per barrel. Brent crude, oil’s international benchmark, was up 2.11 %, to $52.17 per barrel.
Gold was up by 0.34%, to $1,953.20 per ounce.
Read more: 2 Wall Street strategists break down why they are bracing for more volatility if the Democrats sweep the Senate – and share what stocks to watch as the Georgia elections play out
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