For those who believe markets can predict the future, President Trump’s reelection may be looking increasingly better as results of the presidential contest stream in on election night.
The Nasdaq-100 index, which tracks the future prices of tech equities, showed strength beyond what the polls predicted as the evening wore on, surging above 4% positive as Trump stayed competitive against Democratic challenger Joe Biden.
The move in the United States-based Nasdaq was met with a precipitous drop in Chinese yuan pricing.
Chao Ma of the Wells Fargo Investment Institute warned against reading too much into the moves, however, stating that it has historically “made little difference” in predicting a winner.
“The history of the economy and the S&P 500 Index suggests that a president’s party affiliation has made little difference when it comes to long-term returns,” the global portfolio and investment strategist said, according to CNBC. “The long-term drivers of the S&P 500 index have been the economy and business earnings, and we expect that to continue to be the case … beyond the 2020 elections.”