Wall Street Hopes History Repeats With a Post-Election Comeback
- S&P 500 historically posts best returns following US midterms
- Options signal a Democratic sweep would briefly rattle index
Residents wait in line for early voting for the midterm elections in Atlanta, Georgia, on Nov. 4.
Photographer: Michael M. Santiago/Getty ImagesThis article is for subscribers only.
The stock market’s short-term fate is riding on something that’s been a major boon for equities for more than 70 years: US midterm elections.
Rising interest rates, mounting recession risks and the steepest inflation in four decades may cause a break with past trends. But the fourth quarter and year after mid-term elections has historically been the stock market’s strongest stretch during the four-year presidential cycle.