Wall Street Edges Down As Eyes Turn To Debate

Wall Street closed lower on Tuesday, snapping a three-day winning streak as investors took money off the table hours before the first US presidential debate.

All three major US stock indexes lost ground. In a reversal from Monday, market leaders Apple, Microsoft and Amazon weighed heaviest on the S&P 500 and the Nasdaq.

"Tonight's presidential debate has the potential to move markets and investors are unlikely to take a large position in front of that," said David Carter, chief investment officer at Lenox Wealth Advisors in New York. "Right now, markets are clearly driven by events in Washington, be it fiscal stimulus or the presidential election."

Market participants eyed the first head-to-head showdown between Republican President Donald Trump and Democratic challenger Joe Biden in a debate scheduled to air from Cleveland on Wednesday morning Hong Kong time.

The latest poll shows Biden leading nationally and in a number of battleground states.

While the election has implications for different sectors, notably healthcare, green energy and beneficiaries of Trump's corporate tax cuts, Goldman Sachs analysts expected a Democratic sweep of the White House and both chambers of Congress would be beneficial to S&P 500 profits until 2024.

"We think markets can do fine with either Trump or Biden, but they need to know who the winner is," Carter added. "But concern is rising about having a clear election winner in November due partly to so many mail-in ballots, which will take time to count."

Stocks were given a brief boost early in the session by data from the Conference Board, which showed consumer confidence surging past expectations this month with the largest point gain in 17 years.

The Dow Jones Industrial Average fell 0.48 percent, to 27,453, the S&P 500 lost 0.48 percent, to 3,335 and the Nasdaq Composite dropped 0.29 percent, to 11,085. (Reuters)