Ahead of the presidential elections today, the Dow fell by 257.59 points on Monday. Traders are unwilling to bet either way on the winning candidate.
A Trump win would help Bitcoin (BTC-USD) but cryptocurrency stocks. Riot (RIOT) and Mara Holdings (MARA) fell while Coinbase found support above $180.
Similarly, clean energy stocks would rise if Harris won. But Cleanspark (CLSK) lost 5% and Tesla (TSLA) lost 2.47% yesterday.
Market volatility increased, moving in a wider-than-usual range. It is reacting to the latest poll showing a deadlocked race between the two candidates. This uncertainty created more bearish sentiment for markets than usual.
Investors are waiting to see which party will take control of Congress. If the House of Representatives and Senate are divided, the government cannot pass legislative changes effectively. This creates uncertainty for tax hikes or government spending policies.
In the tech sector, the Magnificent Seven names fell, except for Nvidia (NVDA). Berkshire (BRK-B) dropped by 2.18% in response to the underwhelming quarterly performance. Bank stocks like Citigroup (C) and Wells Fargo (WFC) traded lower. Later this week, the Federal Reserve will announce its interest rate policy. Markets widely expect the central bank will cut rates by 25 bps.
