Close Presidential Race Causes Uncertainty in Financial Markets

0
5374
Close Presidential Race Causes Uncertainty in Financial Markets

(TheConservativeNews.org) – On the morning of Wednesday, November 4, the media began assessing election data. It quickly became clear we would not learn the victors right away. This uncertainty has been reflected in financial markets, with stock-price volatility higher than usual across the world.

Wall Street investors had hoped for a quick election result and consequent stability in the market. This did not materialize. On Tuesday, the Dow, Nasdaq, and S&P 500 all closed strongly, but dropped as markets opened on Wednesday morning.

Stocks in Europe fell sharply as markets opened, recovering somewhat by lunchtime. Asia’s markets finished strongly on Tuesday, but opened shakily on Wednesday.

Given the strength of market performances over the last few months (despite the pandemic), Donald Trump is seen as the better bet for the stock market in the long run. The likely tax increases under a Joe Biden presidency would probably subdue growth going forward.

However, it’s difficult to say whether a given outcome would be good or bad for market performance in the short term. A Trump victory would likely lead to civil unrest in many areas, which would deflate investor confidence. 

Copyright 2020, TheConservativeNews.org