U.S. Stock Futures Plummet As Donald Trump Gains Momentum In Key Battleground States

11.08.16 4 weeks ago 4 Comments

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The uncertainty of the presidential race is causing stress among viewers and the stock market. CNBC reported the Dow futures market is down by 500 points in the first few hours of election night.

The U.S. stock market was not the only economy to feel the effects from the election. MSNBC reported the Mexican peso also fell next to the U.S. dollar. The state of the U.S. economy can be dictated by the U.S. election, with it fluctuating just as much as the electoral map can. But the race tonight has been extremely close, and the Dow futures market is reflecting that trend. Ian Lyngen, head of U.S. strategy at BMO, told CNBC said the market is behaving even more cautiously than usual:

“I would say the market is a bit more cautious as it doesn’t seem to be such a quick and decisive victory for Hillary as it seemed. But it’s not over yet.”

CNBC reported the market was heading in a Clinton-win direction, but with it so close, that sentiment is starting to change. Jack Ablin, CIO at BMO Private Bank, told CNBC the market is responding to gut reactions:

“I think this could be the second strike of populism if Trump wins and I think that it’s probably a bigger surprise for international markets than it for the U.S. Right now it’s just emotional. Everything from the last two days would get undone, and then we’d have to take it down. We could see a 600 point (Dow) reversal.”

Other outlets are not so accurate about their reporting, including Wells Fargo, which hasn’t had a good 2016 but, nonetheless, predicted (earlier on Tuesday) that either candidate would prompt a stock market boon.

(Via CNBC & CNBC)

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