U.S. stock index futures and equities rose slightly on Tuesday, recovering some ground after recent sharp losses as investors prepared for a close presidential election and an anticipated Federal Reserve meeting.

Major indexes were lower on Monday, with the S&P 500 and Nasdaq Composite losing 0.3%, while the Dow Jones Industrial Average fell 0.6%, extending losses from the previous week, as risk appetite remained subdued amid tense market signals.

Trump and Harris Set for Close Presidential Election

Investors appeared nervous as the latest polls indicated a tight race between Donald Trump and Kamala Harris in the presidential election, which begins voting on Tuesday. Although earlier polls showed Trump gaining ground, this trend seemed to shift approaching Election Day.

Trump is expected to push for more inflationary policies and stricter trade tariffs on China, which could impact the high-tech sector negatively. Harris, on the other hand, has proposed raising taxes on high-net-worth individuals and large corporations while easing the tax burden on families.

Federal Reserve Prepares to Cut Interest Rates

The Federal Reserve is also meeting this week, where it is expected to reduce interest rates by 25 basis points, following a 50-basis-point cut in September. Recent data revealing persistent inflation and economic resilience in the U.S. has left some uncertainty about the Fed’s rate-cut trajectory in the months ahead, as the central bank has stated that its easing strategy will remain data-driven.

Still, weak nonfarm payroll data released on Friday suggested the labor market may be cooling, which could keep the Fed leaning toward further rate cuts. All eyes will be on Fed Chairman Jerome Powell’s remarks on the central bank’s plans for future rate adjustments.

Quarterly Earnings Continue

Third-quarter earnings have delivered mixed results following a wave of lackluster reports from big tech companies last week. On Tuesday, results are expected from Super Micro Computer (SMCI) and Yum! Brands (YUM). Palantir Technologies (PLTR) rose more than 12% in premarket trading after its earnings exceeded estimates, alongside providing a positive revenue outlook.

Meanwhile, Dollar Tree (DLTR) gained 5% after the discount retailer announced that CEO Rick Dreiling would step down, with COO Michael Creedon Jr. stepping in as interim CEO. Boeing (BA) shares rose 2% after striking workers approved the company’s latest contract offer, ending a prolonged strike that had significantly disrupted production for nearly two months.