US Election results have left investors worldwide on edge as Americans headed to the polls on Tuesday, wrapping up a tumultuous election season that has influenced Treasuries, equities, and other assets in recent months. As the results become clearer, they may have an even greater impact on the markets.
The results could unsettle global markets and trigger financial ramifications. Concerns about US debt, currency strength, and key sectors supporting corporate America may arise.
With polls showing a tight race between the former president and current vice president and control of Congress at stake, investors fear a contested outcome. This could heighten volatility from ongoing political uncertainty.
Mike Mullaney, director of global markets research at Boston Partners and a 40-year investment management veteran, remarked, “This is probably the most significant election I’ve seen in my career.”
He noted, “The outcome will create a sharp divide, with different developments depending on whether Trump or Harris wins.”
The election has gained attention after a market surge that lifted the S&P 500 to new highs in 2024. A 20% year-to-date gain resulted from a strong economy, solid corporate earnings, and Federal Reserve rate cuts.
On Tuesday morning, the S&P 500 rose 0.8%. Some assets gained ground due to recent price fluctuations tied to Trump’s polling and betting market performance.
Indices tracking trader demand for insurance against large overnight currency price movements reached their highest levels since the November 2016 election.