![]() ![]() On the prior occasion that there was a unified government-in 1992, when Democrat Bill Clinton was elected-the DJIA climbed about 5% from around 3,200 in October 1992 to 3,450 by the end of March 1993. However, it should be noted that 2008 was the culmination of the subprime lending crisis and the start of the global financial crisis, so it’s not clear if the downward market movement was driven as much by politics as it was by economics. In early October 2008, the DJIA was around 10,800, but by the end of March 2009, it had fallen 26% to below 8,000. It then climbed about 10% to over 20,000 by the end of March 2017.Ĭonversely, on the prior occasion that there was unified control, the market fell-in 2008, when Democrat Barack Obama was elected president and similarly enjoyed the support of a Congress also controlled by Democrats. In early October 2016, a little more than one month before the election, the DJIA was at around 18,250. Most recently, in 2016, Republican candidate Donald Trump was elected president and enjoyed a Congress controlled by his Republican Party. Periods of unified political-party control have become less common in recent decades, so there are fewer examples on which to draw. Senator Amy Klobuchar (D-MN), Ranking Member of the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights, led a letter to the Department of Justice (DOJ) to to urge the Antitrust Division to conduct a comprehensive review of Google’s proposed acquisition of Fitbit. Unified Control: Presidency and Congress Held by Same Party ![]() However, since 1980, only six of the 21 sessions of Congress have been a unified government in terms of party control. In the 60 congressional sessions since 1900, just over half (34) represented unified governments, meaning that the same party controlled the White House, the U.S. ![]() We looked to see what effect, if any, the party in control has over the market, if that influence differs if Congress is completely controlled by one party or the other, and what happens if there is a split Congress.įirst, we found political control in recent years has become more divided. The timing was to assess long enough before the election that the outcome was still uncertain, and then again after the president has been sworn in (if one was elected) in January and after the new congressional session has started, as by then, new policies would largely be known. We checked its level at the start of October (before a November election) and again at the end of March the following year. elections, we looked at the Dow Jones Industrial Average (DJIA). However, whichever party takes control of the Senate and House of Representatives, the stock market's reaction is likely to be temporary as history seems to suggest. The day after the 2022 mid-term elections and with the results unclear, the stock market reacted by falling.Essentially, the president and the party in power seem to have a negligible impact on the direction of the U.S.We looked at how markets react when the president, the House of Representatives and the Senate are all controlled by the same party, and how markets react when power is divided.Investopedia examined results of elections over recent decades to look for patterns in how markets react to elections in various scenarios.political parties have very different approaches to fiscal policy, which should influence equities markets. ![]()
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