Jaipur Investment：US stock market forecast before US election 2024 results： S&P 500, Dow Jones, Nasdaq to be driven by these factors

US stock market will be driven by a number of key factors in the week starting October 28 as the benchmark S&P 500, Dow Jones Industrial Average, and Nasdaq Composite investors will closely watch earnings results of Wall Street's biggest companies along with employment report or jobs data. While the US election 2024 polling day is also nearing, it will be followed by all-crucial US Fed's next monetary policy decision.Jaipur Investment

Five of the "Magnificent Seven" group of megacap companies that have played a major role in driving the market over the past couple of years are set to report quarterly results next week: Google parent Alphabet, Microsoft, Facebook owner Meta Platforms, Apple and Amazon.

Because of their massive market values, those companies jointly account for 23 per cent of the weight of the S&P 500, meaning market reaction to their results could sway broader indexes in coming days.

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The Magnificent Seven stocks trade an average forward P/E ratio of 35 times, as the companies overall have posted much stronger profit growth than the rest of the S&P 500. But that gap is expected to close in coming quarters.

Next week is the busiest week of the third-quarter reporting season overall, with well over 150 S&P 500 companies set to post results.

The week starting October 28, the final stretch before the November 5 U.SKanpur Wealth Management. presidential election, is crucial for Wall Street. This is when results from megacap tech firms including Alphabet , Apple and Microsoft are due, along with the October U.S. nonfarm payrolls report.

The U.S. jobs report on November 1 comes as investors are weighing whether a stronger-than-expected economy could lead to fewer interest rate cuts by the Federal Reserve than initially anticipated.

Economists expect the employment report to show that the economy created 140,000 jobs in October, according to Reuters data. The report could be "messy" in the wake of two significant storms, but the wages data will be important to watch, said Nanette Abuhoff Jacobson, global investment strategist at Hartford Funds.

The run of market-sensitive events continues the following week, with Election Day on November 5 and the Fed's next monetary policy decision on November 7, which could put investors increasingly on edge in the coming days.

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"The Fed perhaps got a little too dovish ahead of the data. ... The growth and inflation numbers don't necessarily justify easing behavior," said Arnim Holzer, global macro strategist at Easterly EAB Risk Solutions.

Investors are still pricing in another 25-basis-point rate cut at the Fed's November meeting and about two rate cuts by the end of the year, LSEG data showed.

Q1. What are three indices of US stock market?

A1. Three indices of the US stock market are S&P 500, Dow Jones Industrial Average, and Nasdaq Composite.

Q2Simla Stock. When will US Jobs report be announced?Kolkata Stocks

A2. The U.S. jobs report will be out on November 1.

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