“Who’s Afraid of Trump? The Markets…”

  • On October 4, 2016

Debate Night Message: The Markets Are Afraid of Donald Trump

nyt-trumpEconomic View | By Justin Wolfers

The New York Times

These conclusions arise from close analysis of financial markets during Monday’s presidential debate, which provides a fascinating case study of the complex interconnections between American politics and economics.

During the debate, the overnight futures markets rallied, raising the value of broad stock market gauges like the Standard & Poor’s 500-stock index by two-thirds to three-quarters of a percentage point. This was a consequential move, and because it was driven by the reduced chance of a Trump presidency, it reveals that the market believes that stocks would be worth more if he were to lose the election. Four pieces of evidence support this interpretation.

→ Read entire post online at the NYT…