Stock futures dip as Wall Street readies for U.S. presidential election: Live updates

Stock futures dipped in overnight trading Sunday as investors geared up for the highly-anticipated U.S. presidential election.

Futures connected to the Dow Jones Industrial Average lost 0.3%, or 130 points, while S&P 500 futures declined 0.25%. Nasdsq-100 futures dropped 0.3%.

Stocks are coming off a strong start to November, with Amazon and big technology stocks boosting the tech-heavy Nasdaq Composite and S&P 500- 0.8% and 0.4%, respectively. The Dow Jones Industrial Average added nearly 289 points, or about 0.7%.

Tuesday’s election results — which could lead to a split or united government —could play a pivotal role in where stocks finish off the year. The latest poll form NBC News shows a “deadlocked race” between former President Donald Trump and Vice President Kamala Harris.

However, much of market aftershocks may hinge more heavily on which party takes control of Congress. If control of the U.S. House of Representatives and Senate is divided, it would likely mean a maintaining of the status quo. A Republican or Democratic sweep, however, would likely be coupled with a White House victory for the same party, and could mean fresh spending plans or a tax overhaul.

Some on Wall Street view the election as a key obstacle markets need to overcome to rally into year-end, with CFRA Research’s Sam Stovall noting that according to data since 1944, a prematurely strong performance in election years often translates to “further improvement” in November and December.

“I think we have some volatility into next week,” she told CNBC’s “Closing Bell” on Friday. “We’ve got a lot going on, but I think that once we get through it, we rally in November and December.”

Along with the election, Wall Street is bracing for the latest rate decision from the Federal Reserve. Traders are pricing in a 96% chance of a rate cut at the conclusion of the central bank’s policy meeting, according to CME Group’s FedWatch tool. It would follow a supersize 50 basis point move in September.

Greater focus will hinge on commentary from Fed Chair Jerome Powell following the meeting, as Wall Street hunts for more insight into the central bank’s rate moves from here.

Earnings seasons presses on with about a fifth of the S&P 500 slated to report in the coming week. About 70% of companies that have already reported results have surpassed estimates, according to FactSet data. Super Micro Computer, Moderna, CVS Health, Qualcomm and Wynn Resorts are among the companies reporting in the coming days.

— CNBC’s Sarah Min contributed reporting