The Dow traded higher by 210 points, or 0.7%, while the S&P 500 gained 0.3%. The Nasdaq Composite rose 0.1%. Apple shares fell more than 1% after the tech company said iPhone production has been temporarily reduced due to Covid-19 restrictions in China. Shares of Palantir, meanwhile, fell more than 9% after the company posted disappointing quarterly results. Carvana fell 11% after falling more than 20% earlier in the day. Facebook parent Meta gained more than 5% after a Wall Street Journal report said the company could begin layoffs as soon as Wednesday. McDonald’s was trading at all-time highs, up about 1%. Tuesday’s midterm elections will determine which party controls Congress and affect the direction of future spending. Democrats currently control the House and hold a majority in the Senate. Investors could approve of a possible deadlock that could emerge from the midterm elections, as a Democratic president, with a Republican or divided Congress, means historically above-average gains, RBC’s Lori Calvasina said in a Monday note. “The market is optimistic that some kind of Republican sweep of Congress will lead to either some kind of gridlock in Washington, which they see as good, or at least no new spending, which would be good for interest rates and the Treasury supply,” he said. Brad. Conger, deputy CIO at Hirtle Callaghan & Co. On the economic front, investors expect Thursday’s consumer price index report to provide further insight into how far the Federal Reserve needs to go to reduce inflation. A hot report could signal to investors that a turnaround from a prolonged period of higher interest rates may not be imminent. “[In] For stock and bond markets to match the post-peak inflation performance noted in the table, inflation must continue to decline — and at a faster rate than we’ve yet seen. Until the Fed signals that a pivot is near, things could remain challenging,” Baird’s Ross Mayfield wrote in a recent note. Elsewhere, several companies are expected to file on Monday, including Activision Blizzard, Lyft and Take-Two Interactive. Corporate earnings season is winding down with the majority of S&P 500 companies having reported results.
