U.S. Stock Index Futures Steady Ahead of Election Day

(Reuters) – U.S. stock index futures were steady on Tuesday ahead of election day voting, with traders preparing for volatile trading until a clear winner is declared.

Both Republican candidate Donald Trump and Democrat Kamala Harris predicted victory on the last day of campaigning, with polls indicating a very close race.

Betting markets showed mixed outcomes; Harris gained a slight edge on PredictIt, while Trump maintained leads on Polymarket and Betfair.

The VIX, Wall Street's "fear gauge" for expected equity volatility, rose to 21.98, above its 30-day moving average of 19.65 but below last week's two-month high.

U.S. Treasury yields eased slightly from recent highs, positively impacting rate-sensitive equities.

Megacap growth stocks saw premarket gains, with Nvidia (NASDAQ: NVDA) up 0.7%, Alphabet (NASDAQ: GOOGL) up 0.3%, and Tesla (NASDAQ: TSLA) jumping 2%.

Stocks tied to Trump’s potential win rose, including Trump Media & Technology Group up 4% and software developer Phunware gaining 8%.

Ben Ritchie, head of developed market equities at abrdn, remarked, "The markets have already priced in an element of Trump winning to some degree, but we'll have to see whatever the result is."

Investors are also monitoring Congressional elections, anticipating a split government that could hinder the President's ability to implement significant policy changes.

Dow E-minis were up 32 points (0.08%), S&P 500 E-minis increased by 6.75 points, and Nasdaq 100 E-minis rose by 43.75 points (0.22%).

Boeing (NYSE: BA) gained 2.1% as a prolonged, crippling strike ended after factory workers accepted a new contract offer during a vote on Monday (NASDAQ: MNDY).

In addition to the election, the Federal Reserve begins its November meeting on Wednesday, with markets anticipating a 25-basis point cut to the benchmark interest rate. However, uncertainty surrounds future easing as economic data indicates strength.

The major indexes closed lower on Monday during a choppy session.

Upcoming economic data includes September international trade numbers and October S&P Global and ISM services PMI, alongside quarterly earnings from several companies before the bell.