After a tumultuous week in U.S. news there has been much to say not only about the outcome of the election, but the state of our financial backbone. Many predicted a turbulent stock market as election night approached, and to little surprise the stock market has performed just as expected: a rollercoaster of percentages.
The Rise And Fall
A few days prior to Election Day, Citibank predicted a Trump victory would surely drop the market by 3-5%. PBS News Hour predicted a stunning 10% drop in stock markets following the same victory, essentially comparing it to the economic effect of Brexit in the U.K. a few months back.
As Election Day drew to a close the Dow fell nearly 800 points, the a historical drop in a single trading day. Nerves among investors rose with each hour as many worried the predictions would come to fruition. On the morning of November 9th, the Dow and S&P 500 were down around 1.25%. However, as Americans began to slowly rise for the day, the stocks percentages followed suit.
Now three days after the election, the Dow is reporting an increase of 2.41%. While there haven’t been any major bursts in the last few days the market did defy ominous predictions and even recuperate, and then some, of the losses the night of final vote count.