US election ahead. Trump Media shares rise 13%, Gold gains, Fox Corp rises 9% ahead of US election eyes on TV screens. RBA to keep rates higher for longer. Aussie dollar to rise

This time tomorrow, we will probably know who has won the US election. But ahead of that, markets have continued to fall. The Nasdaq is now down 3% from last week’s high. Nvidia $NVIDIA (NVDA.US)$ briefly overtook Apple’s $Apple (AAPL.US)$ US$3.4 trillion valuation at one point, but Nvidia shares are still down 5.6% from their record. Meanwhile, the S&P 500 continued its fall and is now down 2.7% from its high after slipping 0.3% overnight.

Traders don’t know what to do right now, so they are taking profits off the table and moving money out of “Trump trades.” Bitcoin continued to fall after hitting its second-highest level in history last week at $73,564, getting just $233 away from a brand-new record. Bitcoin is now down 8% in a week, back to $67,800. Trump Media shares $Trump Media & Technology (DJT.US)$ rose 12.3% overnight, but that wasn’t enough to erase the 35% plummet from last week, which we discussed on Friday.

But there are some certainties. Gold is holding near record highs, and Fox Corp $Fox Corp-B (FOX.US)$ shares hit a new record high after jumping 9.4% ahead of Americans tuning into the election. News Corp $News Corp (NWS.AU)$ followed, up 0.5%.

US uranium power giants have been stronger performers than chip stocks this year. However, Constellation Energy $Constellation Energy (CEG.US)$ shares fell over 12.5% overnight, Vistra $Vistra Energy (VST.US)$ fell 3.8%, and Public Service Enterprise Group $Public Service Enterprise Group (PEG.US)$ dropped 6%. Why? The top US energy regulator unexpectedly rejected a power deal that another uranium company, Talen Energy, made with Amazon. This news acted as a catalyst for profit-taking ahead of the election. As a result, the world’s biggest uranium ETF, URA $Global X Uranium ETF (URA.US)$, fell 3.8%. It seems it will probably fall a bit further before recovering again, though the ETF is still up 32% from August.

For example, Constellation Energy $Constellation Energy (CEG.US)$ has been a standout this year. Its shares are up 92%, making it one of this year’s top-performing stocks. It has a 20-year agreement to sell power from its Three Mile Island plant to Microsoft $Microsoft (MSFT.US)$ to power its data centers so they’re carbon-free. Constellation Energy reported its financial results overnight: revenue rose 7.2% to US$6.5 billion, exceeding Wall Street’s expectations, and it raised its full-year earnings outlook. Normally, this news would cause a stock to rally, but right now, the US election action, plus what happened to Constellation Energy’s competitor, spooked some investors. However, I think Constellation is worth watching as investors will likely be buying the dip after the election.

Keep an eye on the Aussie dollar. While the Fed is expected to cut rates this week, the Aussie dollar could rally back to 69.42 US cents over time and test recent highs. And, considering that betting odds suggest the RBA won’t cut rates until 2025, any language from the RBA indicating this, could further pressure the Aussie sharemarket lower today.  I also suspect Aussies will keep shopping around for better mortgage and credit card deals to manage costs. Given that NAB $National Australia Bank Ltd (NAB.AU)$ appears to have one of the most expensive home loan variable rates in the market, its shares could come under a little pressure.