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The broader stock market got under influence of midterm elections results which remained more or less unclear. Wall Street reported the expected win of Republicans but given it did not happen, the stock price indices took a slight hit.
Dow Jones dropped up to 2%, S&P 500 witnessed 2.1% drop while NASDAQ fell up to 2.5% on Thursday.
Earlier than the recent falls, the stock markets were on gradual uptrend movement as an after effect of October’s rally and bit of warmth around the Republicans’ win over the Democrats. If the former would have a clear win that it could have control over Congress’ one or both the chambers. Investors expected this way the Republicans would stop the future tax and spending plans.
Chief policy strategist with prominent investment bank Stifel, Brian Gardner said the market was anticipating a totally different result. On the contrary, the result might lead to disappointment for investors who were expecting a more strong domination over the rules brought under the Biden administration.
Experts believe the situation might end up in a gridlock like situation which might not bring fruitful results for the market. It’s already in a vulnerable situation given the inflation and interest rate hikes like crucial factors.
The strategist suggests that there are very less chances of any new significant bill to get passed till the presidential elections in 2024. It doesn’t seem possible despite the looming threat of recession taking over the economy. The only optimist way from here for the market is a federal budget. Given that both the parties—Republicans and Democrats—can’t seem to cooperate and work together, which might not be good in the long term, Gardner added.
On Thursday, 10th November 2022, the government will be releasing consumer price index (CPI) figures of October month. Experts and economists estimate the rise of 8% in CPI in the last 12 months. The figure is notable yet slightly less than September month’s gain of 8.2%.
The stock prices around the stock market are struggling given the looming threats of inflation and recension. Moreover, the weaker earning releases are by and large impacting their stock prices. Disney (DIS) and Roblox (RBLX) stock prices witnessed drops between 13% to 21% after the earnings.
Giant like Meta Platforms are also not an exception given the weaker market situations. Recently the company announced a massive layoff of their current working staff which led the stock price to drop by another 5%.
LIXT stock price of Lixte Biotechnology Holdings, Inc. has shown somewhat better movement with a 2.94% gain from yesterday. The drug discovery company is working towards creating solutions for some common yet serious issues using biomarket technology.
Currently LIXT stock is trading at 0.50 USD. Yet in a longer perspective, the stock price of LIXT is more than 16% down in a month while more than 57% down in the last six months.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
