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The U.S. Capitol is shown on October 5, 2018 in Washington, DC. Later today the U.S. Senate will proceed with a cloture vote for Supreme Court Justice nominee Brett Kavanaugh which could could pave the way for a final vote on his confirmation to the high court as early as Saturday. (Photo by Mark Wilson/Getty Images)
U.S. stock futures were flat on Tuesday night as Wall Street awaited the results of a widely anticipated midterm election, which could have significant consequences for investors.
Dow Jones Industrial Average futures were down just 35 points, while S&P 500 and Nasdaq 100 futures were also down marginally. They opened for trading at 6 p.m. ET.
Equities in the U.S. closed higher on Tuesday as the elections began earlier in the day.
Pollsters and election experts expect the Democrats to take control of the House while Republicans keep a slim majority in the Senate. When government is divided like this — a split Congress and a Republican president — the S&P 500 averages a return of 12 percent annually, according to Bank of America Merrill Lynch.
The other two possible outcomes are the GOP maintaining control over the two chambers and the Democrats sweeping both the House and Senate.
The outcome of these elections has massive implications for investors as it will influence which policy initiatives Congress will pursue or will block. Some of the key areas that will be affected by these outcomes include drug pricing and banking regulation.
These results could also lead to more investigations into President Donald Trump.
But regardless of how the elections shake out, this is the best buying opportunity for investors before year-end, said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.
“This is your entry point,” he said, adding that positive seasonal factors, including strong holiday sales, should boost markets higher before the end of 2018. “You might get some volatility in the next couple of days as the market absorbs the result, but you buy those dips. … Everything is telling you this is the time to buy” following the correction in October.