Skip to main content

Market react clues to watch election night


Election Day is Tuesday, and the polls close after Wall Street’s closing bell. So where should a curious investor go after all the votes have been counted late Tuesday to get an idea of what type of market reaction they can expect Wednesday when the opening bell rings at the New York Stock Exchange?

Look abroad first, where markets in Australia, Hong Kong and Japan will be open when the U.S. election results roll in.

“As election returns are arriving on Tuesday night, you might consider following global market reaction to the election results,” says David Kotok, chairman and chief investment officer at money management firm Cumberland Advisors.

You can also check to see how U.S. stock markets are trading after hours to see how the Dow Jones industrial average and broader Standard & Poor’s 500 stock index are faring.

Gold is also a good tell. Gold, viewed as a safe haven, will likely skyrocket if Trump delivers a surprise win.

If Clinton wins, the Mexican peso should rise against the U.S. dollar; the currency should find buyers as the threat of Trump building a wall along Mexico’s border with the U.S. will be over, as will talk of the billionaire Republican nominee tearing up trade agreements such as
NAFTA.

Markets are global and 24/7. Investors will know if they like the election outcome long before Wall Street opens for business on Wednesday.