Futures edge higher as US polls, Fed rate decision loom large over markets

The markets are scrambling to figure out what happens next, but for the time being, the market is pricing in a higher growth and higher inflation outlook,

Peter Esho of Esho Capital said in a commentary

Positive outcomes for Harris are expected to boost Asian assets, while Trump gains may exert downward pressure,

Anderson Alves of ActivTrades said in a commentary

With election day finally here, expect more market volatility, particularly if the wait for a result is long or contested. Political divisiveness presents a risk to investor sentiment,

said Adam Turnquist, chief technical strategist for LPL Financial

Most stock price movements over time are driven by earnings, inflation, and interest rates. Policy does matter, particularly tax and trade policy, but not as much as some might think,

said Turnquist

Though having gone through the ‘hanging chads’ of the Bush vs. Gore election in 2000, legal challenges, recounts, and the Jan. 6 experience, perhaps markets are battle-tested for election chaos,

Turnquist added

The market appears to be in an anticipatory relief rally now that the election is here,

said Louis Navellier of Navellier & Associates in a note to investors Tuesday

If it becomes a very, very contested election that gets dragged out in the legal system for a couple of weeks. I think the market would not like that... that would be one downside risk,

said Anderson

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I think it's been betting on a Trump victory. I think that's why you've seen today is such a strong move,

said Timothy Anderson, managing director with MND Partners, division of TJM Investments, LLC

My feel is clearly projecting the strong likelihood of a Trump win,

said Anderson

There's been a lot of hedging against potential uncertainty, potential drama out of Washington. We've seen that. And now as we're at Election Day, we kind of are optimistic that maybe some of that can unwind,

said Ryan Detrick, chief market strategist at Carson Group

I very much ascribe to that view that a Trump victory would be very good for stocks, ... And I think a Harris victory would not be particularly good for risk assets."

Jason Trennert, chairman at Strategas, said Tuesday on CNBC's "Power Lunch."

We expect a relief rally with all benchmarks up at the end of the week,

read a Monday note from the firm's trading desk

Event risk out of the way and lower 10yr yield will trump (no pun intended) the negative on fiscal, but it likely means the stock market's rally is short-lived,

the note read

S & P's knee jerk dip likely gets bought as lower rates, weaker dollar, and less volatility could lessen the sting of less de-regulation and animal spirits associated with a Trump victory,

the note read

A Democratic Sweep opens up the possibility that corporate taxes could be raised from 21% to 28%, but this will be difficult with a very small majority as it was in 2020. Similarly, de-regulation theme loses momentum in a Harris Sweep outcome,

read the note

The worst possible outcome is a contested election,

Eric Wallerstein, Chief Markets Strategist at Yardeni Research told Newsweek this week

The market continues to try and price for what is the outcome of this election,

said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle

It is highly unlikely to see a blue wave, but if that happens, the market reaction could be temporarily negative due to the prospects of higher corporate tax rates,

said Cetera's Klimke

Ross Mayfieldamerican businessman

There's certainly a lot of anxiety about the election result, but (good) economic data, Fed cutting rates, earnings coming in pretty strong can overwhelm that anxiety,

Mayfield said

High-level US equity action has been hard to ascribe to politics alone as really there is no clear frontrunner in the presidential election, and full government control for either party is far from certain as well,

said Scott Chronert, U.S. equity strategist at Citi