After Wall Street's prediction on how the US 2024 election will be a threat to the economy, it's no longer voters that are in the anxiety list.
As Americans head to vote, global investors are also heading towards great anticipation, especially since it has divided the market since Harris' replacement of outgoing US President Biden.
Both Trump and Harris propose contrasting policies on taxation and trade, and investors are wary of market volatility that could arise amid a now-normal US economy, according to Reuters.
Depending on who wins, different sectors will experience shifts in regulations, taxes, and compliance to economic strategies. Investors are especially focused on bellwether counties, hoping fo rarely indication of the election outcome, although many battleground states might not provide meaningful results until late Tuesday night.
Global Market on Edge Following US 2024 Election
Experts believe this is one of the most significant presidential elections, with stocks closing lower the day before November 5 as concerns about the Federal Reserve's upcoming policy decisions also weight on the market, per The Economic Times. With this outcome, there's been a demand for protection against overnight market fluctuations.
During the Bush-Gore recount, investors recall that S&P 500 slumped to a record high, making them extra cautious on a similar situation possibly happening this time. It also does not help that Cboe Volatility Index (increased investor fear and uncertainty in the market) rose indicating growing market fear. The next week will be crucial for the global market as the clarify of the election result settles, but it will also determine market stability moving forward.
In the financial sector, Trump's victory would favor industries expecting tax cuts and deregulations, while Harris could lead a stricter regulations and taxes for wealthy individuals, as shared by VCPost.
Join the Conversation