History shows that stocks usually go up after a U. S. presidential election. But don't expect a smooth ride right away. The day and week after the election, stocks often drop a bit. Don't worry, though, because they usually bounce back within a month. Let's look at some past elections.

In 2020, the S&P 500 went up by 2. 20% the day after the election. But a week later, it was down by 5. 23%. A month later, it was up by 8. 83%. By the end of the year, it had risen by 11. 48%. This pattern isn't always the same. In 2016, the S&P 500 only went up by 1. 11% the day after the election. But by the end of the year, it had risen by 4. 64%.

The Dow Jones Industrial Average has a similar story. In 2020, it went up by 1. 34% the day after the election. But a week later, it was down by 7. 06%. A month later, it was up by 9. 06%. By the end of the year, it had risen by 11. 38%.

The Nasdaq Composite Index also follows this pattern. In 2020, it went up by 3. 85% the day after the election. But a week later, it was down by 3. 52%. A month later, it was up by 10. 90%. By the end of the year, it had risen by 15. 48%.

So, what does this mean? It means that investors should be ready for some ups and downs right after the election. But in the long run, stocks usually go up.

What Happens to Stocks After a U. S. Election?

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