Stocks have spent the last few sessions in a downward spiral. And while some of that was due to the Federal Reserve’s last opinion on interest rates, the real culprit has been the uncertainty over the upcoming presidential election. This week, the election will dominate the market’s returns until the very last vote is tallied. Given the uncertainty and closeness of the polls, traders could be on edge until the victor – Hillary Clinton or Donald Trump – is announced. (See last week’s Market Glance for more.)
But just because the election is the main focus this week, it doesn’t mean that there isn’t important economic data being released. We’ll get key metrics of labor, consumer and housing health this week.
In addition, the earnings season train continues to roll on. The majority of the S&P 500 has already reported their profits for the quarter. However, there are still plenty of firms left that need to announce their earnings, or lack thereof. Depending on how the reporting goes, stocks could continue their spiral downwards.
All in all, we could be in for another rough ride over the next seven days.