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What the Quitaly Vote Today Means for Your Money
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Why the Stock Market Today Is So Volatile Ahead of Election
The biggest mover of the stock market today (Monday) is tomorrow's U.S. presidential election.
Stocks, commodities, and currencies are all extremely volatile today as we await the most contentious presidential election in memory. The biggest election news today is the FBI announcing it found no evidence to warrant charges against Hillary Clinton.
Shortly after the opening bell, the Dow Jones Industrial Average surged 237 points, or 1.3%, to 18,125. The blue-chip benchmark extended those gains in morning trading, with the Dow up nearly 2% by 2:00 p.m.
The S&P 500 climbed 1.3% on the open. By midmorning, the broad-based benchmark was up 1.61% to 2,119.70. That marked its biggest gain since Sept. 12. It also put the index on track to end a string of nine consecutive down sessions – its longest losing streak in nearly 36 years.
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The Nasdaq jumped 1.82% to 5,138.27.
But it wasn't just U.S. markets that saw big price swings today. Here's how the 2016 presidential election is impacting global stock markets today, and commodities…
The rally in the stock market today started overseas. Stocks across Europe and Asia were also higher on Monday. The peso soared 2.1% against the dollar. The Mexican currency has been weighed down in 2016 by a possible Donald Trump win.
With the FBI signaling it has put an end to the Clinton email investigation, many investors believe Clinton has revitalized her chances of winning Tuesday's election. It also removes the uncertainty of possible additional revelations about a potential Clinton administration.
The latest Wall Street Journal/NBC News poll shows Clinton holding a four-point lead over Donald Trump. That's an improvement over recent polls. Yet it's less than half the 11-point lead she held in a mid-October survey before the most recent FBI investigation.
Many investors believe a Clinton victory, at least in the near term, would be more supportive of stocks. That short-term stretch of market calm in the wake of a Clinton win would also help keep the U.S. Federal Reserve on pace to hike interest rates at the December FOMC meeting.
That thinking gave the U.S. Dollar Index a boost today, too. (more…)
Global stock markets today are being widely impacted by the election.
Equities, commodities, and currencies are extremely volatile one day before the most contentious presidential election in memory.