Investors wait to see who will be the next US president | News about the 2024 US election

Caution prevailed Monday as the winner of the closely contested presidential election may not be known for days.

U.S. stock indexes were flat to lower on Monday as investors braced for a crucial week for global markets in which Americans will elect a new president and the Federal Reserve is likely to cut its interest rate.

There was caution as the winner of the closely contested election between Democratic nominee Kamala Harris and Republican nominee Donald Trump may not be known until days after voting ends on Tuesday.

Some of the so-called “Trump trades” lost ground after a recent poll showed Harris ahead in Iowa, triggering a decline in the U.S. dollar, bond yields and Bitcoin.

Harris' odds have improved on several betting sites, an election indicator that many market participants are closely watching.

“This is the biggest event for the markets this year … but we think it's wisest not to make big (investment) bets,” said Michael Reynolds, vice president of investment strategy at Glenmede.

Unsettled trading is expected in anticipation of the election results and due to a lack of clarity about the political implications.

“We are bracing for volatility and perhaps looking for opportunities on the edges,” Reynolds said.

CBOE's VIX expected stock volatility reading is 22.39, well above the 30-day moving average of 19.44. However, it is still well below the 31.8-41 range at which it traded in the week before the 2020 election.

Stocks seen as bets on a Trump victory fell. The Trump Media & Technology Group recently lost 2 percent and the software developer Phunware, which developed an app for Trump's campaign, lost 8.3 percent in 2020.

Investors, meanwhile, remained largely confident of a 25 basis point interest rate cut by the Fed at its November meeting, with a decision expected on Thursday.

Ninety minutes into trading, the Dow Jones Industrial Average fell 108.63 points or 0.26 percent to 41,943.56, the S&P 500 gained 2.54 points or 0.04 percent to 5,731.34 and the Nasdaq Composite Index lost 20.00 points or 0.11 percent. to 18,219.92.

An index of energy stocks rose 1.6 percent as oil prices rose more than 2 percent after OPEC+ postponed its plans to increase production.

All three major indexes were down for the week on Friday, as mixed gains from technology megacaps led to losses at some of Wall Street's biggest companies.

Most mega-cap stocks lost ground on Monday, with Tesla falling 2.4 percent, as sales of the electric vehicle maker's Chinese-made products fell in October.