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Stock Market Trends Hint at Harris Advantage in Tight U.S. Election

As the S&P 500 shows significant gains, historical patterns suggest a potential edge for the incumbent party in the upcoming presidential race.

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A screen displays the presidential debate hosted by ABC between Republican presidential nominee, former U.S. President Donald Trump and Democratic presidential nominee, U.S. Vice President Kamala Harris in Philadelphia, Pennsylvania, U.S., September 10, 2024. REUTERS/Evelyn Hockstein
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Kamala Harris and Donald Trump.

Overview

  • The S&P 500 has increased by over 12% since early August, a trend historically favoring the incumbent party in U.S. elections.
  • Since 1928, the S&P 500 has predicted the winner in 20 out of 24 elections, with rising markets often signaling a win for the current administration.
  • Despite strong market performance, a majority of voters still perceive the economy negatively due to persistent inflation and high living costs.
  • Experts warn of potential market volatility due to political instability and possible legal battles if the election results are contested.
  • Public sentiment shows growing confidence in Democrats' economic management, challenging Trump's previous economic advantage.