Tuesday, November 2, 2010
US Stocks Close Higher Ahead of Election, FOMC Results
This article addresses how political expectations can affect the stock market. In today's case, the American stock market closed relatively high in anticipation of big Republican electoral wins. The Dow Jones increased by 64.10 points or 0.58%, which was a particularly large increase. Since the majority of the business and finance community perceives the Republican party to have interests that are more commonly aligned and friendly, the stock market optimistically expects Republican electoral wins to have an overall positive effect. Further dealing with voters' expectations, the S%P 500 has historically increased right after every mid-term election.
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Considering that the Obama administration has also been relatively friendly with the business community, this is actually somewhat surprising to me. Both Reps and Dems need big business, and more importantly both recognize that our economy needs big business right now. Honestly I feel like a Republican House is going to change very little in actual legislation for business
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