Presidential Election Fever Sends Stocks Down The unpredictability around the elections and other factors have sent US stock prices down in the major indexes.
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When you are trading stocks online, you would know that extraordinary events and their anticipation can cause fluctuations in the stock market. Based on the nature of the extraordinary event, stocks could dip or rise. But when there is unpredictability in the air, and when there isn’t any clear indication as to how the outcome of the expected event could end up, it usually sends the stocks down. As the US presidential elections approach their end, stocks have moved lower last week in the major American stock indexes. There is a good deal of uncertainty around the elections. Add to it the chances of a rate hike in December, and it isn’t a surprise that the stock market displayed a bearish trend. However, there were indications of strength in the economy as the Labor Department reported increased wages and a faster hiring pace by employers in October. International markets were also lower in the past week with FTSE 100 of the UK falling 4.31%, Germany’s DAX 30 falling 4.09% and Japan’s Nikkei 225 falling 2.74%. The S&P 500 SPDR ($SPY) had a 1.87% dip in the past week. The Dow Jones Industrial Average ($DIA) had a 1.46% fall through the past week. The index that performed worst of all the major indexes is PowerShares QQQ Trust ($QQQ) that had a 2.96% fall through the past week. A 1.94% fall was reported by the ETF iShares Russell 2000 Index ($IWM) in the past week. This week traders will be in close observation of various economic events such as the consumer sentiment data expected on November 11 and the jobless claims on November 10. But let’s not forget, the biggest event of all will be the outcome of the US Presidential elections on the 8th of November, 2016. Stock traders and investors are already given advice on how to prepare for either eventuality, be it a Trump or a Clinton victory. Globally too, equity markets had a slip at the end of last week, on Friday, as investors feared the outcome of the presidential election. Election fever was also responsible for the US dollar to slip to over a one-month low against Swiss franc. Oil prices too fell globally as worries persisted about rising inventories and also doubts as to whether OPEC members will follow the production limits that were planned. The weakened oil prices helped raise US Treasury prices, while generating concerns about low inflation.
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