Election Day Boosts US Stocks with Nasdaq 100, Tech, and Crypto Stocks Leading Gains

E-mini Nasdaq-100 Futures Hold Steady as U.S. Election Day Unfolds

E-mini Nasdaq-100 Index futures showed modest gains in Tuesday’s mid-session, holding above a key technical level as traders maintained focus on the 50-day moving average of 20021.19. This moving average is currently serving as a critical indicator for the short-term direction, as traders look for sustained movement above or below this level to signal future momentum.

Recent action suggests that a strong close above the 50-day MA could attract more buyers, targeting the recent high of 20788.50. In contrast, a decline below the 50-day level may trigger a downward push toward the 200-day moving average at 19360.16, with further downside potential to a significant 50% retracement level at 19186.00.

Broad Wall Street Gains on Election Day

Wall Street’s primary indices posted gains as voting kicked off in a closely contested U.S. presidential election. The uncertain election outcome, with recent polls showing a tight race between Republican candidate Donald Trump and Democratic contender Kamala Harris, is likely to influence market volatility in the coming sessions.

While volatility was most notable in bonds and currency markets, equity markets were relatively stable, underpinned by solid corporate earnings and robust economic data that support a favorable long-term outlook.

On the day, all 11 sectors in the S&P 500 rose, with notable gains in Industrials, Consumer Discretionary, and Information Technology stocks, each up by more than 1.3%. The VIX, Wall Street’s volatility index, eased to 20.24, reflecting a more tempered market sentiment compared to the 2020 election period and recent highs.

Economic Data and Market Sentiment

Tuesday’s optimism was bolstered by stronger-than-expected U.S. services sector data. The Institute for Supply Management (ISM) reported an unexpected rise in the non-manufacturing PMI for October, reaching a two-year high and signaling robust employment growth in the sector. According to Carson Group’s Chief Market Strategist Ryan Detrick, the steady services performance reinforces market confidence in the underlying economic strength.

In addition to the presidential race, the Congressional elections could shape legislative power, with many analysts expecting a divided government that could constrain major policy changes. Traders are particularly attuned to sectors potentially influenced by a Trump victory, with shares of Trump Media & Technology Group and Geo Group climbing 14.4% and 6%, respectively.

Tech and Crypto Stocks Lead the Market

Megacap growth stocks posted strong gains, with Tesla up 4% and Nvidia adding 3.1%. Crypto-linked stocks also rallied, mirroring Bitcoin’s recent gains and supported by Trump’s favorable stance toward the sector. Data analytics firm Palantir surged 23% after raising its revenue forecast for the third consecutive quarter, and Boeing dipped slightly after initial gains, following the resolution of a labor strike.

Market Forecast

As traders brace for post-election volatility, the Nasdaq-100’s future trajectory may depend on its ability to sustain movement above the 50-day moving average. A solid break above this level could signal a bullish trend, while a move below could bring more selling pressure. Market participants will also monitor the Federal Reserve’s policy meeting, starting Wednesday, where an anticipated 25-basis point rate cut could influence near-term sentiment depending on the economic data’s strength.