Spencer Platt | News Getty Images | Getty Images Stock futures were modestly higher on Tuesday afternoon as polls began to close in the United States’ midterm elections. Nasdaq 100 futures rose 0.5%, while S&P 500 futures gained 0.2%. Dow futures were marginally higher. Stocks are marking a third straight day of gains, with the Dow climbing 333 points on Tuesday for its third straight session adding more than 1%. The rally for stocks may be due in part to the election, where Wall Street expects Republicans to gain ground and create gridlock in Washington, D.C. Morgan Stanley’s chief U.S. equity strategist, Mike Wilson, told “Closing Bell” that a divided government could help ease concerns about inflation and higher interest rates going forward. “To get further support for this rally, we think interest rates need to come down… Tonight’s election could be very important in that regard because it looks like the House is going to go the Republican way. That means a deadlock.” Probably, less fiscal spending will be achieved,” Wilson said. He added that it was unclear if markets had already priced in a big night for Republicans. The market’s recent rally comes on the back of a strong seasonal run. Historically, stocks tend to rise after midterm elections and the policy clarity they bring, and the last two months of the year are considered a bullish period for investors. One stock that weighed on futures was Disney, which fell more than 6 percent in extended trading after the entertainment giant missed top- and bottom-line estimates for its fiscal fourth quarter.
