The Dow Jones Industrial Average closed at a 0.50% decline on Election Day eve, falling 150 points, as investors grew cautious. The S&P 500 declined 0.20%, and the Nasdaq Composite dipped 0.21%, highlighting the mixed tone in the market. The U.S. Treasury rallied, hinting at a move into safer assets.

However, with the election results hanging in the balance, potential volatility is one of the things investors are bracing for. Nvidia (NVDA, Financial) shares rose more than 1% after news that it will take Intel's seat in the Dow Jones Industrial Average alerted investors to a shift towards sectors driven by AI.

• Warning! GuruFocus has detected 4 Warning Signs with NVDA.

Meanwhile, Intel's (INTC, Financial) shares dipped by 4%, as it is set to be removed from the Dow by week's end, underscoring the evolving focus of major indices towards sectors poised for growth in a digitizing economy.

Palantir Technologies (PLTR, Financial) is set to report earnings after the close of the market, adding to the week's market-moving events. The results could influence tech sector movements with its role in providing AI solutions to government and defense. Meanwhile, market watchers will be watching the Federal Open Market Committee's interest rates decision later this week to see how Fed Chairman Jerome Powell comments in the press conference on future monetary policy.

Investors are not relaxed as the intersecting currents of forthcoming elections, corporate transitions, and monetary policy adjustments paint the background.

This article first appeared on GuruFocus.