Wed, 11/04/2020 – 04:15
The election outcome will define the next four years and it’ll be interesting to observe the market’s initial reaction to the result. As the following chart shows, the past five presidential elections didn’t evoke extreme market reactions, with Barack Obama’s first triumph in 2008 a notable exception.
Back then, the S&P 500 dropped 10 percent the first two days after the election, although it needs to be noted that said election took place in the middle of the financial crisis, which left markets particularly volatile.
You will find more infographics at Statista
Trump’s victory four years ago did prompt an extreme market reaction overnight (1000 point crash in Dow futures followed by an even bigger rebound before the market opened the next day), given the surprising nature of his win over Hillary Clinton.
But after that initial insanity, the S&P 500 drifted just 1.1 percent on post-election day and continued its general upward trend the days that followed.
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Author: Tyler Durden