- Stocks were mixed Monday as technology companies fell.
- Apple reportedly cancelled a production boost for the iPhone XR.
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Stocks were mixed Monday as technology companies slumped on the eve of elections that could shift control of Congress.
The Dow Jones Industrial Average rose 0.76%, and the S&P 500 was up 0.56%. The Nasdaq shed 0.38% as Apple weighed on the index, dipping to its lowest level in three weeks, after the Nikkei reported the company cancelled plans to increase production of the iPhone XR.
Other high-flying technology companies followed, with Amazon down more than 2% and Facebook shedding 1.5%. Insurance companies, on the other hand, gained as Berkshire Hathaway led the way higher.
Jim Reid, a strategist at Deutsche Bank, said the key market issues in midterm elections are whether to expect further fiscal stimulus and what the implications are for trade policy. But he noted they could be positive for equities with or without a shifting balance of power in Washington.
"Our US equity strategists have written extensively on how markets have historically rallied around midterm elections, though this is equally due to historic coincidence (growth has tended to be strong around elections) as the actual elections," he wrote in a research note. "That said they expect this scenario to repeat."
The dollar edged lower against a basket of currencies, while Treasury yields also fell. The 10-year was down 1.1 basis points to 3.203%, as investors looked to a $37 billion sale of three-year notes.
The Federal Reserve is expected to keep monetary policy steady at a meeting Thursday. The central bank increased its benchmark interest rate by 25 basis points to 2.25% in September, and has signaled the next hike could come in December.
"The upcoming Federal Reserve meeting will be another risk event to monitor this week, but interest rates are not expected to change in November and as long as the FOMC carries the same narrative that U.S. interest rates will be gradually adjusted higher in the next 15 months or so," said Jameel Ahmad, head of market research at FXTM.
Energy stocks found support as oil prices rose for the first time in a week, with Brent crude oil, the international benchmark, up 0.4% to trade near $73 a barrel. The US reimposed sanctions against Iranian barrels on Monday, meaning buyers must stop trading oil with the Islamic Republic or risk facing penalties from Washington.