The stock market has seen a hike after the US presidential election day. If history is taken into account then the stock market is likely to see a positive impact for the next couple of months after the US elections. As per the data made available by Sundial Capital Research Inc., the S&P 500 Index took a jump of 2.2% on Wednesday.
It was the best performance shown by it on the first day after a US presidential vote since the year 1932. It has shown an average gain of 4.4% over the next three months of a US presidential election day. Sundial President Jason Goepfert has written that a positive reaction after the election is a very good sign for the stock market.
Further, he has added that it is the first time that the S&P 500 has risen over 1.5% on election day and the day following an election. The election result is still not final but the obtained results of vote counting have indicated that the Democrat leader Joe Biden is likely to win the US presidential election.
Joe Biden’s win would not make a key difference in implementing fresh policy steps but it will help to put a cap on tax hikes or more regulations. This would benefit investors to a great extent as it would help them gain more money in the market.
According to Goepfert, it is still not clear what effect the election result will have in the long-term. However, the S&P 500’s day-after performance and additional gains or losses over the time period of the next three months will give a little comfort to the bulls.
Post the election day, S&P futures took a hike of 0.7% in Tokyo while Nasdaq 100 was 1.5% higher. Similarly, Asian and emerging market stocks also saw the biggest hike since the year 2018.
