How Stock Market Has Reacted Day After Presidential Elections – Including Today (Chart)

Where does 2016 rank historically?

Last Updated: November 10, 2016 @ 7:42 AM

Stock markets initially hated news of a Donald Trump presidency, but by the end of trading Wednesday, they recovered nicely: it marked the fifth-best S&P 500 session for the day after a U.S. presidential election in measured history.

The index rose 1.10 percent from the prior close, coming just a hair away from tying for fourth, when the S&P increased 1.12 percent the day following the 2004 election.

Here’s a snapshot of the 2016 version’s full trading day:

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The S&P grew by 23.54 points on Wednesday, closing out at 2,163.10. The S&P had shuttered Tuesday at 2,139.56.

The best trading day the S&P ever had immediately following Election Day was a 1.77 percent rise in 1980, when Ronald Reagan defeated Jimmy Carter. For the next-largest gain, one would have to go way back to 1936 (+1.51 percent), when Franklin Delano Roosevelt was elected to the second of his four terms.

Losses, have been more dramatic — and common. In 2008, following President Obama’s first win, the market plummeted 5.27 percent — the most for a post-Election Day session. The second-worst fall was in 1932, when the market dropped 4.42 percent, when FDR was first elected. The average day-after story comes to a -0.92 percent market movement.

Check out the Bespoke Investment Group chart below to see how the S&P 500 has performed on each Election Day and the subsequent day after. Note: Election Day was a market holiday from 1932-1980.

day-after

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