Stock market today: Wall Street drifts ahead of Election Day and a manic week for markets

NEW YORK (AP) — U.S. stocks drifted lower Monday ahead of a momentous week full of potential flashpoints in Washington, D.C., and around the world.

The S&P 500 slipped 0.3%, though it remains near its record set last month. The Dow Jones Industrial Average fell 257 points, or 0.6%, while the Nasdaq composite slipped 0.3%.

Intel fell 2.9%, and chemical producer Dow sank 2.1% in their first trading since getting notified they’ll no longer be included in the Dow Jones Industrial Average. Warren Buffett’s Berkshire Hathaway dropped 2.2% and was one of the heaviest weights on the market after reporting a drop in operating profit for the latest quarter.

But the majority of stocks within the S&P 500 rose, including a 2.8% gain for Fox after it reported a stronger profit than expected. That was despite increases in some costs, including for newsgathering at Fox News to cover this election cycle.

Election Day will arrive Tuesday, though its result may not be known for some time as officials count all the votes. That’s raised fears about the possibility of sharp swings around the world because markets infamously hate uncertainty.

History may be less foreboding. The broad U.S. stock market has historically gone on to rise regardless of which party wins the White House. And in 2020, U.S. stocks climbed immediately after Election Day and kept going even after former President Donald Trump refused to concede and challenged the results, creating plenty of uncertainty. A large part of that rally was due to excitement about the potential for a vaccine for COVID-19, which had just shut down the global economy.

“Bottom line – the US election is incredibly important, but the process is likely to be incredibly noisy,” according to Michael Zezas, a strategist at Morgan Stanley.

For markets, Zezas also points to how prices may have already moved ahead of expected outcomes from the election. A win for Trump this election could mean U.S. tariffs on Mexican imports, for example, which could hurt the value of the Mexican peso. But the peso has already fallen against the U.S. dollar in recent months, which could limit further moves if a Trump win were actually to happen.

A Trump victory would be less of a surprise to markets this time around than in 2016, when Treasury yields soared on expectations for tax cuts that could further inflate the nation’s debt or fuel a stronger U.S economy. Treasury yields have already climbed in recent weeks, in part due to rising expectations in some market corners for a Trump win, along with a spate of data showing the U.S. economy has remained stronger than feared.

On Monday, Treasury yields gave back a chunk of those gains. The yield on the 10-year Treasury fell to 4.29% from 4.38% late Friday.

Another investment that’s become a barometer in the market for Trump’s perceived chances of victory swung sharply through the day. After veering between losses and gains through the morning, Trump Media & Technology Group ended up rising 12.4%.

The stock of the company behind Trump’s Truth Social platform had been ripping higher from a bottom in September, until it hit a wall last week and dropped at least 11% in three straight days.

In the oil market, the price for a barrel of U.S. crude rose 2.8% to $71.03 after Saudi Arabia and other oil producers said they would delay plans to increase the amount of crude they produced. Brent crude, the international standard, rose 2.7% to $75.08 for a barrel.

The price of Brent is still down for the year so far, in part because of worries about how much demand will come from China given its economic challenges.

The Standing Committee of China’s National People’s Congress is meeting this week, and analysts say the government may endorse major spending initiatives to boost economic growth amid troubles for the country’s real-estate industry.

Beyond that meeting and Election Day in the United States, this week will also feature the latest meeting of the Federal Reserve, where the widespread expectation is for it to cut its main interest rate for a second straight time.

The hope that’s propelled U.S. stock indexes to records recently is that the U.S. economy can remain resilient and avoid a long-feared recession, in part because of the coming cuts to rates expected from the Fed.

On Wall Street, Nvidia rose 0.5%, and Sherwin-Williams jumped 4.6% after learning they’ll be replacing Intel and the parent of the Dow chemical company in the Dow Jones Industrial Average.

Stocks fell in the nuclear power industry after U.S. regulators denied a request that would have sent more electricity to an Amazon data center from a Pennsylvania nuclear plant run by Talen Energy. Companies across the power industry have been making deals with data center operators to feed their growing need for more electricity, and Talen fell 2.2%.

All told, the S&P 500 fell 16.11 points to 5,712.69. The Dow dropped 257.59 to 41,794.60, and the Nasdaq composite lost 59.93 to 18,179.98.

In stock markets abroad, indexes were mostly lower in Europe after rising in much of Asia.

AP Business Writer Elaine Kurtenbach contributed.

Trader Jonathan Mueller works on the floor of the New York Stock Exchange, Monday, Nov. 4, 2024. (AP Photo/Richard Drew)

Trader Michael Milano, foreground, works with colleagues on the floor of the New York Stock Exchange, Monday, Nov. 4, 2024. (AP Photo/Richard Drew)

Trader Michael Capolino works on the floor of the New York Stock Exchange, Monday, Nov. 4, 2024. (AP Photo/Richard Drew)

Trader Robert Chamak, left, and specialist James Denaro work on the floor of the New York Stock Exchange, Monday, Nov. 4, 2024. (AP Photo/Richard Drew)

Specialist Stephen Naughton work at his post on the floor of the New York Stock Exchange, Monday, Nov. 4, 2024. (AP Photo/Richard Drew)

Specialist Meric Greenbaum work at his post on the floor of the New York Stock Exchange, Monday, Nov. 4, 2024. (AP Photo/Richard Drew)

Specialist Anthony Matesic works at his post on the floor of the New York Stock Exchange, Monday, Nov. 4, 2024. (AP Photo/Richard Drew)

A screen on the floor of the New York Stock Exchange, Monday, Nov. 4, 2024 shows a broadcast talking about Kamala Harris and Donald Trump. (AP Photo/Richard Drew)

FILE - A sign marking Wall Street is shown near Trinity Church in New York's Financial District on Oct. 30, 2024. (AP Photo/Peter Morgan, File)

A food vendor's cart is parked across from the New York Stock Exchange on Wednesday, Oct. 30, 2024. (AP Photo/Peter Morgan)

Currency traders talk near the screen showing the foreign exchange rates at a foreign exchange dealing room in Seoul, South Korea, Friday, Nov. 1, 2024. (AP Photo/Lee Jin-man)

Stock market today: Asian shares are mostly higher as China begins major economic meeting

Stock market today: Asian shares are mostly higher as China begins major economic meeting

A currency trader walks by the screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Friday, Nov. 1, 2024. (AP Photo/Lee Jin-man)

HANOI, Vietnam--(BUSINESS WIRE)--Dec 5, 2024--

Global leading technology corporation FPT announced its participation in the founding of the Ethical AI Committee by Vietnam Software & IT Services Association (VINASA), recently established during a high-level tech discussion “AI Safety – Shaping Responsible Innovation,” featuring industry leaders, policymakers, AI visionaries, including Professor Yoshua Bengio (Université de Montréal and Mila), often called one of the “Godfathers of AI,” in Hanoi, Vietnam. By leveraging FPT’s innovation and leadership in AI, this strategic initiative represents a significant step in Vietnam’s commitment to ethical governance and responsible advancement of artificial intelligence, positioning the nation as a proactive advocate in shaping global AI standards.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20241205099452/en/

The Ethical AI Committee is poised to play a pivotal role in defining Vietnam’s AI trajectory. With a mandate to safeguard the ethical development, deployment, and application of AI technologies, the committee will ensure that innovation aligns with societal and human welfare while fostering a favorable regulatory environment for AI practices. Beyond building policy frameworks and risk assessment standards, the committee will serve as a platform for international collaboration and a trusted advisor to the Vietnamese government. Its responsibilities include developing AI safety standards, analyzing potential risks in AI deployment, and promoting awareness of responsible AI practices nationwide.

As governments and international organizations worldwide prioritize robust AI regulations and ethical frameworks, this initiative reflects Vietnam’s commitment to aligning with global efforts to navigate the complex challenges and opportunities posed by AI. Global initiatives such as the EU AI Act, OECD AI Principles, and UNESCO’s ethical AI recommendations are setting critical benchmarks for transparency, accountability, and fairness in AI governance. The committee underscores Vietnam’s effort to foster an AI ecosystem where innovation thrives within ethical boundaries, ensuring both global competitiveness and the protection of societal values.

Professor Yoshua Bengio stated: “As we continue to unlock the transformative potential of AI, it is crucial that we prioritize safety and ethical practices in its development. The challenge lies not just in advancing AI, but in doing so responsibly—ensuring that AI serves humanity without compromising our values and putting democratic institutions at risk. Fostering a community dedicated to ethical AI will help drive progress in ways that benefit society, accelerate innovation, and safeguard against the risks of autonomous systems. The establishment of the Ethical AI Committee has the potential of being an important step in guiding Vietnam toward a future where AI development aligns with global standards for transparency, accountability, and societal welfare.”

Mr. Nguyen Tu Quang, Vice Chairman of VINASA and Chairman of the AI Committee, shared: “As a professional social organization with over 600 members in the ICT sector, VINASA places a strong emphasis on market development trends and emerging technologies, particularly AI. We are deeply concerned about the challenges AI presents, such as transparency, information security, privacy, humanity, and adherence to ethical standards. AI offers significant opportunities for Vietnam to engage on the global stage. However, like any new technology, it carries inherent risks, requiring careful consideration from researchers and developers alike. VINASA believes that for AI to be developed effectively and sustainably, it is essential to establish legal and ethical frameworks. These frameworks are not intended to impose control but to provide guidance, enabling AI to fully realize its potential while minimizing negative impacts. They will lay a foundation for sustainable technological development that aligns with societal values.”

Dr. Truong Gia Binh, FPT Founder and Chairman, said: “This initiative exemplifies Vietnam’s vision to lead responsibly in the age of Artificial Intelligence. In a world where AI’s rapid evolution presents both unprecedented opportunities and risks, the need for responsible governance has never been more urgent. By aligning with international standards and collaborating with global innovators, FPT is committed to actively shaping an AI landscape that serves humanity’s best interests while driving sustainable innovation, both in Vietnam and globally.”

Standing as a driving force behind Vietnam’s ambition to lead in AI, FPT’s strategic direction is fully aligned with the government’s vision toward an AI-driven nation. With over a decade of expertise in AI research and development, the company now boasts over 1,500 AI engineers and a robust ecosystem that integrates education, innovation, and global collaborations. Anchored by strategic investments and partnerships with world-leading names like NVIDIA, LandingAI, and Mila, FPT is cultivating a new generation of AI-enabled engineers and delivering comprehensive AI-powered solutions tailored to the unique needs of diverse industries.

As a founding member of the AI Alliance, launched by IBM and Meta, FPT is also actively promoting the development of ethical and responsible AI practices on a global scale. The tech firm recently further solidified its leadership by launching an AI partner ecosystem with global technology pioneers and unveiling the FPT AI Factory, an all-inclusive stack for end-to-end AI product lifecycle, encompassing infrastructure, platforms, and applications designed to address the dynamic needs of the global AI landscape.

About FPT
FPT Corporation (FPT) is a globally leading technology and IT services provider headquartered in Vietnam. FPT operates in three core sectors: Technology, Telecommunications, and Education. During over three decades of development, FPT has constantly provided practical and effective products to millions of people and tens of thousands of business and non-business organizations worldwide, establishing Vietnam’s position on the global tech map. Keeping up with the latest market trends and emerging technologies, FPT has developed the Made-by-FPT ecosystem of services, products, solutions, and platforms, which enables sustainable growth for organizations and businesses and offers distinctive experiences to customers. In 2023, FPT recorded a total revenue of USD 2.17 billion and 48,000+ employees. For more information about global IT services, please visit https://fptsoftware.com/

The Ethical AI Committee by Vietnam Software & IT Services Association (VINASA) kick-off ceremony was held at FPT Tower, FPT Headquarters (Photo: Business Wire)