How did the 2020 US presidential election affect global markets?

The 2020 US presidential election had a significant impact on global markets, with investors closely watching the election results and subsequent events that followed. The uncertainty surrounding the election and its outcome had a ripple effect on global markets, particularly in the days following the election.

The US stock market experienced volatility as investors braced for a potential contested election or a drawn-out vote count. The S&P 500 and the Nasdaq both saw significant declines on November 4, the day after the election, with the Dow also experiencing losses. However, as more certainty came about in the days following the election, markets stabilized and began to recover.

Internationally, the election also had an impact on global markets. Major stock markets in Asia, Europe, and the Middle East experienced volatility as investors monitored the election. However, similar to the US market, markets eventually stabilized as more information became available.

The impact of the election on specific sectors varied. For example, renewable energy stocks saw a boost following the election, with the expectation that the Biden administration would prioritize clean energy policies. On the other hand, certain industries such as oil and gas saw declines due to concerns about potential policy changes under the new administration.