Stock bulls expect a short-lived selloff after the US midterm elections, with Morgan Stanley’s Wilson arguing that historical data shows equities rise 6-12 months post-vote. The S&P 500, up 12% this year, may dip first but should rebound, as Democrats’ potential AI regulatory push faces market resistance. The dollar’s rally, driven by strong growth and inflation, is likely to persist regardless of election results, with the Fed expected to resume rate hikes after voting.
US jobs data due Friday forecasts 65,000 new jobs and 4.2% unemployment, keeping the Fed on a tightening path. Apple reports after the close today amid a packed earnings week featuring Apple, Palantir, Pfizer, and more. Investors anticipate continued capital outflows from data centers and a pause in fundraising cycles, while relative economic fundamentals — not election outcomes — drive currency markets, per Manulife’s Nathan Thoof.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing