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Dow Drops 133 Points Because the Midterm Elections Didn't Change a Thing


image Michael Haddad

6:27 a.m. The Dow Jones Industrial Average is off more than 100 points Friday morning, as markets realize that the midterm elections are over and they still have to contend with trade and the Federal Reserve.

S&P 500 futures have fallen 0.5%, while Dow Jones Industrial Average futures have declined 133 points, or 0.5%. Nasdaq Composite futures have dropped 0.8%.

In its policy statement Thursday, the Fed didn't do anything surprising, but that may be part of the problem. In a normal world, the Fed's rate increases would be digested, and we'd all go on with our lives. But with the trade war looming over everything and the U.S. running a massive deficit late in the economic cycle, there are just too many other that can't be ignored.

"There's no clear indication of why investors are taking a defensive approach today on the back of the U.S. elections and Fed's rate decision and statement," writes Konstantinos Anthis, head of research at ADSS. "In any case, futures in...the U.S. are pointing slightly lower this morning so it looks like the end of the week will be a bearish one after a series of positive sessions for the global stock markets."

Write to Ben Levisohn at Ben.Levisohn@barrons.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , US Markets



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