Investors are currently focused on key counties for early election results that could influence market stability.
Pennsylvania prepares for key role in presidential election BARTONSVILLE, Pennsylvania – NOVEMBER 2, 2024: Campaign signs for Republican presidential candidate and former U.S. President Donald Trump and Democratic presidential candidate and U.S. Vice President Kamala Harris are seen on Route 33 in Bartonsville, Pennsylvania, on November 2, 2024. Michael M. Santiago/Getty Images
Voters are no longer the subject of anxiety after Wall Street predicted the 2024 US election would pose a threat to the economy.
As Americans head to the polls, global investors are looking forward to the election, especially since Harris replaced outgoing U.S. President Biden, and the market has been divided.
According to Reuters, both Trump and Harris have proposed starkly different tax and trade policies, and investors are concerned about potential market volatility once the U.S economy returns to normal.
Depending on who wins, different industries will experience changes in regulations, taxes and compliance with economic strategies. Investors are particularly watching bellwether counties for signs of election results, although many battleground states may not release meaningful results until late Tuesday night.
Global Market on Edge Following US 2024 Election
Experts consider this to be one of the most important presidential elections, and stocks closed lower the day before November 5 as concerns over the Federal Reserve’s upcoming policy decision also weighed on the market, The Economic Times reported. Due to this outcome, the demand for protection from overnight market volatility also increased.
Investors recalled the S&P 500’s fall to record highs during the Bush and Gore recounts, making them extra cautious about the possibility of a similar situation this time around. It didn’t help that the CBOE Volatility Index, a gauge of investor fear and market uncertainty, rose, indicating heightened market panic. Next week will be critical for global markets as the election results will be settled, but it will also determine future market stability.
In the financial sector, VCPost believes that a Trump victory would benefit industries that expect tax cuts and deregulation, while Harris is likely to lead with stricter regulation and taxes on the wealthy.