US pre-open: Stocks trade higher as Americans head to the polls

Wall Street trading got off to a positive start on Tuesday as market participants prepped for the outcome of the US midterm elections.

As of 1500 GMT, the Dow Jones Industrial Average was up 0.63% at 33,032.67, while the S&P 500 was 0.29% firmer at 3,817.65 and the Nasdaq Composite came out the gate 0.32% softer at 10,598.06.

The Dow Jones opened 205.67 points higher on Tuesday, extending gains recorded in the previous session.

Tuesday's primary focus will be the US midterms, with the result of which set to determine which side of the aisle controls Congress and has the power to steer future policy and spending. Market reactions will almost certainly depend on whether or not Republicans can take back control of the House of Representatives, the Senate, or both.

The midterms may also set the stage for Donald Trump's potential return to the White House, with the former president announcing he will "be making a very big announcement" on Tuesday at Mar-a-Lago. Trump is currently bookmakers' favourite to take the top job in 2024.

On the macro front, small business optimism fell to a three-month low in October, according to the National Federation of Independent Business. The NFIB's small business optimism index fell to 91.3 in October, down 92.1 in September, as 33% of owners stated inflation was their primary concern when it came to operating businesses - up three points from the previous month to make up the highest percentage since the fourth quarter of 1979.

In terms of earnings, Walt Disney and AMC Entertainment will both report their latest set of quarterly results after the close.

Reporting by Iain Gilbert at Sharecast.com