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tight elections spark significant stock market rallies according to historical data

Close presidential races historically trigger significant stock market rallies, with the S&P 500 averaging a 3.9% gain in tight contests since 1980. As the 2024 election approaches, polling shows a neck-and-neck race between Donald Trump and Kamala Harris, raising expectations for market performance post-election. Analysts suggest that the resolution of uncertainty typically boosts investor confidence, although unclear outcomes could lead to short-term market volatility.

stock market trends and uncertainties following the us presidential election

Stocks generally rise after U.S. presidential elections, but investors should brace for initial volatility. Historical data shows average gains from Election Day to year-end, though declines often occur in the days and weeks following the election. Uncertainty over close races may prolong market fluctuations.

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