Traders are taking into account the potential impact of Donald Trump's return to the White House, as rising consumer prices and mortgage rates are causing public discontent.

The average 30-year mortgage rate has increased to 7.09%, the highest level since July, with a 45 basis point rise in the past month. Yields on 10-year Treasury notes have also gone up, climbing 49 basis points to 4.24%, as market-based measures of expected inflation show signs of recovery.

Analysts believe that Trump's proposed inflationary tariff and immigration policies, along with a potential weakening of the Federal Reserve's inflation-fighting measures, could worsen the ongoing cost-of-living crisis. While political factors are not the only drivers of these market movements, they are playing a significant role in shaping investor sentiment as the November 5 election approaches.