Dow, S&P 500, Nasdaq shake as Trump’s trade worsens after Iowa surprise

Peloton (PTON) stock rose 9% on Monday after Bank of America analysts upgraded the stock to “neutral buy” amid optimism about the fitness equipment maker’s new management. did.

Analysts said, “Peloton’s new CEO Peter Stern has no experience as a CEO of a publicly traded company, but he has experience in consumer software and hardware, including subscription services. It meets all the criteria.”

Stern, an avid Peloton user from Ford, Fla., will become CEO starting January 1.

Constellation Energy (CEG) shares fell as much as 12% early Monday as nuclear stocks widened after the U.S. government rejected another Big Tech nuclear deal late Friday.

The Federal Energy Regulatory Commission (FERC) has rejected a proposal by power grid operator PJM to increase the amount of electricity delivered over the grid from Talen Energy (TLN) to Amazon’s (AMZN) AI data center. Talen said in a statement Sunday that he believes FERC’s ruling was “an error,” adding that the company is “considering its options with a focus on commercial solutions.”

Talen Energy is down 9% in early trading, Sam Altman-backed Oklo (OKLO) is down 8%, Centrus Energy (LEU) is down 19% and Nano Nuclear (NNE) is down 10%. Vistra (VST) fell 4% and NuScale fell 4%. Power (SMR) decreased by 7%.

Despite Monday’s decline, Constellation Energy shares are up more than 90% since the beginning of the year, making it one of the best-performing stocks in the S&P 500.

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Trump Media & Technology Group stock (DJT) fell about 2% in early trading Monday after initially starting in the green. With the presidential election just one day away, stocks are bracing for another volatile week on Wall Street.

The stock suffered its biggest decline last week, dropping about 20% on Friday to close out five days of trading.

And since Tuesday, the company’s market cap has been slashed by more than $4 billion, but the stock is still more than doubling from its September lows.

Shares of the company that runs Truth Social, the Republican candidate’s social media platform, had risen in recent weeks ahead of a recent selloff as betting markets at home and abroad were shifting in favor of Trump’s victory.

Prediction sites such as Polymarket, PredictIt, and Kalshi all showed that Trump has a better chance of becoming president than Democratic candidate and current Vice President Kamala Harris. But in Iowa, which has historically voted Republican, Harris’ lead over Trump narrowed significantly over the weekend in a new poll.

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U.S. stocks fell on Monday as investors braced for this week’s U.S. elections and Federal Reserve policy meeting.

The S&P 500 (^GSPC) started near the flat line, while the tech-heavy Nasdaq Composite Index (^IXIC) fell 0.1%. The Dow Jones Industrial Average (^DJI) fell about 50 points.

Nvidia (NVDA) stock rose more than 1% on news that the artificial intelligence chip powerhouse will replace semiconductor giant Intel (INTC) in the Dow Jones Industrial Average on Friday. Energy stocks (XLE) also rose on Monday as oil prices soared.

Investors are focused on Tuesday’s highly anticipated U.S. presidential election and the Federal Open Market Committee meeting on Wednesday and Thursday. Markets largely expect policymakers to cut interest rates by 25 basis points.

Affordability concerns are keeping potential first-time homebuyers out of the housing market.

According to data from the National Association of Realtors’ (NAR) 2024 Home Buyer and Seller Profile, a new report shows first-time home buyers will make up 24% of all buyers this year, the highest since 1981. This was the lowest percentage.

Over the past year, rising home prices, rising borrowing costs and low inventory have reduced home affordability, leaving many first-time homebuyers unsure about their home purchase. In July, NAR surveyed more than 167,000 recent homebuyers who said barriers to entry remain steep.

“During the study period, mortgage rates rose to nearly 8% and housing affordability fell to historic lows. Homebuyers continue to struggle with housing inventory,” NAR said. Deputy Chief Economist Jessica Lautz told Yahoo Finance.

“At the same time, rental prices have been rising, and after student loan suspensions, borrowers have had to restart payments, making it difficult to save for a down payment,” Lautz added.

Mortgage rates have soared this year to between 6% and 7%, with average mortgage rates now rising after hitting a two-year low in September. On the other hand, entry-level buyers may also bid against buyers who make all-cash offers.

“If a buyer has a solid financial footing to enter the purchase market and receives multiple offers, they may compete against an all-cash offer,” Lautz said.

Oil futures rose more than 2.5% on Monday after OPEC+, a group of major oil producing countries, announced it would postpone lifting production cuts by one month.

West Texas Intermediate (CL=F) futures rose to over $71 per barrel, and international benchmark Brent crude oil (BZ=F) hovered around $75 per barrel.

The Organization of the Petroleum Exporting Countries, along with Russia and other countries, announced that it would continue to cut production for one month until the end of 2024.

The decision to postpone an additional 180 billion barrels per day (bpd) from December had already been postponed in recent months due to fluctuations in oil prices.

Economic indicators: Factory orders (September), durable consumer goods orders (September)

Revenue: Berkshire Hathaway (BRK-A, BRK-B), Cleveland-Cliffs (CLF), Constellation Energy (CEG), Goodyear (GT), Hims & Hers (HIMS), Marriott International (MAR), Palantir (PLTR), Win (WYNN)

Here are some of the biggest stories you may have missed over the weekend and early this morning.

Why banks are (probably) rooting for Donald Trump

DJT falls as Trump Media traders head into voting day

Harris or Trump will shape the U.S. energy debate, but they may not decide it.

Oil prices rise as OPEC+ postpones production increase, Iran strengthens its rhetoric

From stocks to cryptocurrencies, investors are bracing for election swings

Nvidia CEO asks SK Hynix to accelerate supply of HBM4 chips

President Trump could send already high tariffs into the stratosphere