Society

Trump's Strong Night Causes Stocks To Tank

| by Lauren Briggs

As Republican presidential nominee Donald Trump took the lead over Democratic nominee Hillary Clinton in multiple swing states on Nov. 8, several major stocks plummeted.

With Trump leading in Florida and winning Ohio, the Dow Jones dropped more than 500 points in overnight trading, Standard & Poor's 500 index futures dipped by 58 points, and the Nasdaq fell 123 points, reports The Hill.

Meanwhile, in Mexico, the country's peso dropped more than four-and-a-half points to 20 per dollar. The peso has risen and dropped along with Clinton's chances of becoming president, and was at a similar rate before FBI Director James Comey announced that Clinton would not face charges for her use of a private email server as Secretary of State, after the FBI had opened a new investigation into a trove of previously unseen emails.

Earlier in the day, Bridgewater Associates, the largest hedge fund in the world, projected in an investor note that the U.S. equities would drop by 10.4 percent in the event of a Trump presidency, notes Business Insider. The firm, which manages roughly $150 billion, also predicted that the market would rise by 2.3 percent should Clinton win the White House.

Popular Video

This young teenage singer was shocked when Keith Urban invited her on stage at his concert. A few moments later, he made her wildest dreams come true.

The firm's co-chief investment officers -- Greg Jensen, Jason Rotenberg and Jeff Amato -- said that their predictions were not meant to be seen as political stances on either candidate and that they intended to remain neutral.

"We are global macro investors, not political experts," the three wrote.

The note projected that European, Japanese and Chinese equity markets would all drop by close to 10 percent each if Trump wins, while a Clinton win would raise each of them by 1 or 2 points.

"The impact of a Trump win is larger because the odds of a Trump victory are currently smaller," the note said.

Popular Video

This young teenage singer was shocked when Keith Urban invited her on stage at his concert. A few moments later, he made her wildest dreams come true:

If Trump wins, the hedge fund would likely experience a "manageable loss" similar to a bad month, while a Clinton win would lead to "a modest gain" for them, they predicted.

Sources: The Hill, Business Insider / Photo credit: Michael Vadon/Wikimedia Commons

Would Trump winning be good for the economy?
Yes - 0%
Yes - 0%