• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

US macro, earnings are ‘a bigger influence’ on markets than election: Citi

by November 4, 2024
written by November 4, 2024

Investing.com — As the U.S. election approaches, Citi analysts report that markets are not following the typical patterns seen in previous election cycles, suggesting that U.S. macroeconomic indicators and corporate earnings are exerting a greater influence than election-related factors.

The bank notes that historically, U.S. equities tend to dip in the month leading up to an election, and volatility typically increases. However, this year’s October rally in equities and a lower VIX indicate that other economic factors are playing a more prominent role.

“U.S. equities are typically weaker in the one-month lead up to the election, but equity markets have been relatively strong this October,” Citi notes.

Additionally, instead of the usual defensive shift toward Quality stocks, Growth and Price Momentum have outperformed, indicating “no style de-risking,” as Citi highlights.

In a similar sentiment, Morgan Stanley also stated Monday that immediate market reactions to election outcomes often fail to represent long-term trends.

According to Morgan Stanley, investors should “compare ‘what’s in the price’ to the ‘plausible policy path,’” as short-term moves tend to be “noisy” and can mislead investors.

Citi’s analysis points to possible post-election trends, particularly that U.S. equities could rally once the election uncertainty clears.

“U.S. equities tend to perform positively (if not rally) post the election,” with current S&P 500 positioning indicating an expectation of further gains.

However, Citi cautions that rising rates could challenge this outlook, as higher bond yields may exert downward pressure on stocks.

The bank adds that in recent months, the primary market dynamics have been influenced by macro events rather than politics. As Citi puts it, “other risks, such as U.S. macro, reporting season etc., are having a bigger influence than any perceived election risks.”

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Nvidia said to be routing orders away from Super Micro amid accounting woes
next post
Pakistan central bank cuts rates by record 250 bp, beating expectations

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Cuba suffers third major setback in restoring power to island, millions still in dark
    • Factbox-Arcadium deal could power Rio Tinto’s entry into lithium supplier big league

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy