US markets closed lower on Monday and started the new week on a risk-off note, as uncertainties regarding the US Presidential Election outcome and the Fed interest rate decision kept investors on edge.

The Dow Jones managed to recover from the day’s lows, falling over 250 points, and at one point the index fell over 400 points. The S&P 500 and Nasdaq Composite alternated between gains and losses, eventually ending the session down 0.3%.

Nvidia shares closed higher after Dow Jones reported that the chip maker will begin trading on the exchange, replacing Intel, starting in Friday’s trading session.

Ahead of Tuesday’s vote, stock investors decided to stay on the sidelines as polls showed Americans narrowly divided between Donald Trump and Kamala Harris. The possibility of a disputed result could delay vote counting for weeks or even months. For most people this means only one thing; a potential increase in volatility. Treasuries rose across the curve and the dollar fell the most in more than a month.

The Cbox Volatility Index ended near the 22 level on Monday.

10-year Treasury yields fell nine basis points to 4.29%. Bitcoin fell 2.6%. Oil prices climbed after OPEC+ agreed to roll back its December production increase and Iran outlined a possible response to Israel’s latest bombardment.

“Normally the Fed’s interest rate announcement would dominate the discussion of the week, but this isn’t just any week,” said Chris Larkin of Morgan Stanley’s E*Trade. “Traders and investors awaiting election results should prepare themselves for the possibility of delayed results and its potential impact.”

JPMorgan Chase & Co. strategist Dubravko Lakos-Bujas predicts that US stocks will rise towards the end of 2024 after the results of the US presidential election are announced, especially if the outcome ends in political stalemate.

“In both stalemate scenarios, we think stocks will reprice as uncertainty fades, volatility declines, and hedges relax, investors refocus on the Federal Reserve at a time when the economy and corporate earnings remain resilient,” he wrote.

With both US presidential candidates in “bad shape” heading into next week’s election, markets are bracing for an outcome that could lead to a wide range of policy implications. But it’s notable that, regardless of party affiliation, since 1933, stocks have almost always risen by double digits by the end of a president’s term, according to Seema Shah of Principal Asset Management.

(With Input from Agencies.)