Are Stocks Going to Plunge if Congress Is Split Under President Donald Trump? Here's What History Says About Stock Market Returns in This Scenario.
Nearly a century of historical return data shows what happens when the political puzzle pieces are rearranged on Capitol Hill.
Overview
Since the late 1890s, roughly three-quarters of all presidential terms have ended with the stock market delivering gains. But under President Donald Trump, the annualized returns of the Dow Jones Industrial Average (DJINDICES:^DJI), S&P 500 (SNPINDEX:^GSPC), and Nasdaq Composite (NASDAQINDEX:^IXIC) have been higher than under most other presidents.
While a significant chunk of these gains traces to the evolution of artificial intelligence and has little to do with the goings-on in Washington, D.C., fiscal policy changes implemented on Capitol Hill can impact business growth rates and the stock market. This places the spotlight squarely on the Nov. 3 midterm elections.
Details
For the first two years of President Trump's non-consecutive second term, he'll have enjoyed a unified government, with Republicans controlling a majority of seats in both houses of Congress. But this ideal scenario for the president may be about to change.
Source
Originally published at www.fool.com.