US Election - How the Stock Market Reacted to Past Election Results？
Happy Tuesday to moo families! The result of the U.S. Election will be revealed soon. How do you think the election may affect the stock market?![]()
The U.S. election attracts global attention while investors are worried due to a high degree of uncertainty. Would Trump's reelection bring good news to the market since he stands for deregulation and tax cuts? Or will Biden put a bull in the market in the hope that he may brings stability to the White House?
Whatever happens, the result of the election outcome will generate a great impact on the stock market. As the following chart shows, the past five presidential elections evoke different market reactions. Especially in 2008 when Barack first elected as the president. Back then, the S&P 500 dropped 10 percent the first two days after the election.
As the chart shows, ten days after the previously 5 elections, the stock market had risen twice in 2004 and 2016. Interestingly, according to the above data from Yahoo! Finance, and Statista, when a Democrat candidate won, the market would fell.![]()
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curtaincall : Both lol
Reverseeee : Democratic hopeful Mr. Biden wants to increase the corporate tax rate
JP88 Reverseeee: And tax the interest on retirement plans.
Selow BiHi : both could affect different aspects of the market. likely Biden would buoy green markets whereas Pres. Trumpet would have a more positive effect across the entire market.
J V : stimulus is the issue. if dems win and repubs try to block stimulus until February, market will tank. everything is dependent on this stimulus
Selow BiHi : I think Jan 1, 2021 has the best chance to buoy the market.
Zellarocks : Trump wins the market will go up, Biden wins the market will crash. It's plain simple facts. Republican party is trying to make everyone money, Democratic party is trying to make only them money.
KLaue Selow BiHi: Why?
Kittykiki Zellarocks: Interesting, but the data showed that when the Democrats won, the market rose. Any idea about this?
Zellarocks : Market also shows when we change President's it drops.
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