Sectoral Effects: Certain sectors (e.g., energy, healthcare, technology) could be more sensitive to a specific candidate's policies, and changes in those sectors can ripple through global markets.
Monetary Policy: The U.S. Federal Reserve may also adjust its monetary policy in response to election outcomes or fiscal policy shifts, influencing global interest rates, currencies, and investment flows.
Investor Sentiment: Global markets can be affected by how investors perceive the election results in terms of stability, growth, or potential risks.
If the election results point toward significant policy shifts, market reactions can be pronounced, leading to short-term volatility, though longer-term trends depend on how new policies are enacted and their impact on economic fundamentals.