Trade Inc: US stocks reversed a week-long losing streak after the US Federal Bureau of Investigation (FBI) again cleared Democratic presidential candidate, Hillary Clinton of wrongdoing over alleged criminal wrongdoings connected to the use of a private email server she used to send and receive top secret correspondence when she was US Secretary of State.
Equity markets had suffered more than a week of consecutive down days after the FBI reopened its investigation into another batch of 650,000 emails stored on a device belonging to a former Clinton aide. Markets had been concerned that the debacle could derail Clinton’s bid for the presidency and open the door to a Trump victory.
The Dow Jones Industrial Average surged by more than 350 points, a jump of 2% while the S&P500, which had suffered its longest losing streak in decades, climbed 46 points to the upside. Gold fell sharply, shedding nearly 2% as investor sentiment switched from seeking safe-haven assets to adopting “risk-on” sentiment.
“A Trump victory is generally perceived by the market as disruptive to the US economy since his rhetoric revolves around shaking up the economy, cancelling trade agreements and taking on the banking and financial lobbies,” said Eric Stone, chief economist at Trade-Inc.
“We don’t believe the volatility is over. The election is just one of several factors that will be weighing on investors’ minds as we approach the end of the year. We still have the Fed’s December meeting to deal with and there’s still time for a major upset come the December nonfarm payrolls data,” concluded Stone.
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