Stock Market Recovery Unlikely Ahead of US Midterms

U.S. President Donald Trump’s favorite report card on his presidency may be failing him at a critical moment.

U.S. stocks have fared well since Trump took office, a fact he has repeatedly touted, but have stumbled badly in October. The S&P 500 .SPX is down 7.6 percent and on course for its biggest monthly drop of Trump’s presidency with fewer than two weeks before voters determine whether his Republican Party retains control of Congress.

Republicans have emphasized Trump’s stewardship of the economy and recent record stock market highs in their campaigns. It is unclear whether a last-minute market drop will be a persuasive factor for voters.

A Reuters/Ipsos poll conducted the week ended Oct. 16 found 51 percent of respondents approve of Trump’s handling of the economy, compared with 45 percent who approve his job performance overall.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza