The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Wall Street focuses on stimulus as US election goes down to the wire

Whoever eventually wins the US election, stock markets will likely do well thanks to Fed QE enabling fiscal stimulus, but polarization itself is a threat.

Donald-Trump-shout-rally-R-960x640.jpg
Donald Trump at a campaign rally on Tuesday

With postal votes still being counted and legal challenges prepared, financial markets will remain unsettled until a result finally emerges from the US election.

So, ignore short-term market volatility. Remember, instead, that quick takes are often wrong.

The initial stock market reaction to Donald Trump’s victory in 2016 was for S&P futures to be 5% limit down even before the market opened the next day, and then a swift cash market sell-off.

The rebound followed within days and lasted for much of the next three years. Wall Streeters, who mostly failed to predict Trump’s win, soon decided his agenda of tax cuts and deregulation would suit them just nicely, thank you.

If Trump remains in the White House, the US stock market will do well, so say the army of people paid to take cash from the rest of us in exchange for financial assets, as they claim it also will if Joe Biden replaces him.

What are we even worrying about?

Fed fundamentals

And while the world waits, the US election already has a winner: Jerome Powell.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree