US election results impact on US stock market, S&P 500, Dow Jones Industrial Average

US stock market indices S&P 500 and the Dow Jones Industrial Average are bound to react to US election 2024 results.

Wall Street investors awaited the outcome of the U.

S.

presidential election between Donald Trump and Kamala Harris and other potentially market-rattling events this week.

A contested election result could cause volatility on the markets, noted Russ Mould, investment director at AJ Bell.

Equally, a clear winner quickly after voting ends could provide some relief to investors, Mould said.

There is likely to a period of volatility particularly if the result is contested, but investors should keep their eyes on long-term horizons as historically financial markets have risen over the course of both Democratic and Republican presidencies.

This week brings various potential flashpoints, among them Election Day in the United States.

But the results may not be known for days, weeks or months as officials count all the votes, and the uncertainty could roil markets.

Adding to the potential for volatility, the Federal Reserve will also be meeting on interest rates later this week.

The widespread expectation is for it to cut its main interest rate for a second straight time.

The hope that’s propelled U.

S.

stock indexes to records recently is that the U.

S.

economy can remain resilient and avoid a long-feared recession, in part because of the coming cuts to rates expected from the Fed.

FAQsQ1.

What are key indices of US stock market?A1.

US stock market indices S&P 500, the Dow Jones Industrial Average, and Nasdaq.

Q2.

When will Federal Reserve meet on interest rates?A2.

Federal Reserve will also be meeting on interest rates later this week.

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