Stocks Headed Mostly Higher Ahead of US Midterm Elections

Stocks Headed Mostly Higher Ahead of US Midterm Elections

NEW YORK (AP) — Stocks rose in morning trading on Wall Street on Monday as the campaign winds down for the U.S. midterm elections that will determine which party controls Congress.

The S&P 500 was up 0.5% at 10:16 a.m. Eastern time. The Dow Jones Industrial Average rose 226 points, or 0.7%, to 32,634 and the Nasdaq rose 0.4%.

Apple fell 1.2% after the company warned customers they will have to wait longer to get the latest iPhones after antivirus restrictions were imposed on a contractor’s factory in China. Facebook’s parent company jumped 5.3% after the Wall Street Journal reported that the company plans a big round of layoffs this week.

Bond yields increased. The 10-year Treasury yield rose to 4.19% from 4.16% on Friday. The two-year Treasury yield rose to 4.73% from 4.66%.

Tuesday’s election it will decide the control of the Congress and of the main governments. History suggests the ruling party may suffer losses in the midterms, and decades-high inflation has become a major problem for Democrats.

Stubbornly high inflation and the Federal Reserve’s policy of raising interest rates to combat it remain major concerns on Wall Street. Investors will get an important update on inflation on Thursday when the US government releases its October consumer price report.

Investors have been closely watching the latest economic reports and company earnings to get a better idea of ​​the impact of inflation on businesses and consumers. Wall Street is also trying to determine the Fed’s next moves in its fight against inflation, as it risks slowing the economy too much and triggering a recession.

The latest round of corporate earnings has provided mixed financial results and warnings from companies about the impact of inflation on operations and demand for goods and services. Several big companies will report results this week, including Walt Disney on Tuesday.

Markets gained ground in Asia amid continued speculation of a possible relaxation of China’s zero COVID strategy, although there has been no official confirmation from China of a major change.

European markets were mostly higher.

Yuri Kageyama and Matt Ott contributed to this report.

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