What the stock market typically does after the U.S. election, according to history

Published On Nov 4, 2024, 2:14 PM

Historically, the stock market tends to rise after U.S. presidential elections, but investors should brace for short-term volatility. Following elections since 1980, major indexes have shown an average of gaining between Election Day and year-end. However, declines are common immediately after elections, with investors often recovering losses within a month. The current political landscape may add uncertainty to market movements as results could take time to finalize, particularly for close congressional races.

Stock Forecasts

Given the historical patterns following U.S. elections, investors might see an overall increase in stocks over the next few months. However, immediate volatility is likely, especially if election outcomes remain uncertain. The market may fluctuate before stabilizing and trending upwards towards year-end.

The Dow, much like other indexes, may experience initial declines but is expected to rebound in the following weeks as the election results solidify and market sentiment improves.

The uncertainty surrounding election outcomes and potential changes in Congress could lead to some short-term negativity. Once clarity is achieved, positive trends are anticipated for tech stocks as historically, the Nasdaq has been resilient in these periods.

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