Even though the markets were optimistic of a Clinton victory in the beginning, it didn’t stop a surprisingly volatile reaction after the election began to swing towards Trump.
Trump’s victory, which moved much more quickly to its near certainty before the media made America wait for hours to confirm a few states in the East such as Pennsylvania, shocked half of America.
It also shocked the markets.
The news that Republican presidential candidate, Donald Trump was expected to win over Democrat, Hillary Clinton in the general election caused a steep downturn in the Dow Futures Market.
Out of Reuters:
U.S. stock index futures sank in the overnight session into Wednesday as a market that had been expecting a victory by Democrat Hillary Clinton scrambled to adjust to an upset win by Republican Donald Trump.
S&P 500 futures pared losses by more than half as Trump took the stage at his Manhattan headquarters striking a conciliatory tone. He began by thanking Clinton for her many years in public service.
“His victory speech helped turn markets a bit,” said Brian Jacobsen, chief portfolio strategist at Wells Fargo (NYSE:WFC) Funds Management in Menomonee Falls, Wisconsin.
“He sounded conciliatory and didn’t bring up tariffs or the wall, which were probably two of the market’s biggest concerns.”
Through the night, financial markets reacted violently as the results beat the polls and closed Clinton’s path to victory. The S&P futures (ESc1) slid 5 percent and hit a limit down, meaning the contract could not trade lower, only sideways or up. Dow Industrials futures briefly fell 800 points.
But after all the hysterics, it seems people regained their heads, and much of the credit can be given to Donald Trump himself for his great speech. The Dow Jones briefly dipped, but is currently up over yesterday. So much for the liberal hissy fit. The markets will soon recognize that free market principles, lower taxes and bringing jobs back to America will be quite a boon for the market, and for all Americans.