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Stocks May Open Lower Amid Uncertainty About Elections - U.S. Commentary

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Stocks are likely to move to the downside in early trading on Tuesday following the mixed performance seen in the previous session. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 38 points.

The downward momentum on Wall Street comes amid uncertainty about the outcome of today's highly anticipated midterm elections.

The elections will decide control of both the House and Senate and could have a major impact on President Donald Trump's ability to enact his pro-business agenda.

Democrats are seen with an easier path to retaking the House than the Senate but could still be a significant thorn in Trump's side with control of just the lower chamber.

Traders may be reluctant to make any significant moves, as the outcome of the elections may not be known until tomorrow morning.

The Federal Reserve's looming monetary policy announcement may also keep some traders on the sidelines, with the Fed due to announce is latest decision on Thursday.

While the Fed is widely expected to leave interest rates unchanged, traders will keep a close eye on the accompanying statement for clues about an expected rate hike in December.

Stocks moved in opposite directions during trading on Monday, with the Dow and the S&P 500 adding to last week's strong gains but the tech-heavy Nasdaq extending the sharp pullback seen last Friday.

The major averages ended the day mixed, as the Nasdaq climbed off its worst levels but still closed down 28.14 points or 0.4 percent at 7,328.85. The Dow advanced 190.87 points or 0.8 percent to 25,461.70 and the S&P 500 climbed 15.25 points or 0.6 percent to 2,738.31.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index jumped by 1.1 percent, while Hong Kong's Hang Seng Index advanced by 0.7 percent.

Meanwhile, the major European markets have moved to the downside on the day. While the U.K.'s FTSE 100 Index has slumped by 1.1 percent, the French CAC 40 Index is down by 0.6 percent and the German DAX Index is down by 0.4 percent.

In commodities trading, crude oil futures are inching up $0.03 to $63.13 barrel after edging down $0.04 to $63.10 a barrel on Monday. Meanwhile, after slipping $1 to $1,232.30 ounce in the previous session, gold futures are rising $2.60 to $1,234.90 an ounce.

On the currency front, the U.S. dollar is trading at 113.14 yen compared to the 113.19 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1434 compared to yesterday's $1.1407.

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