What the data says about the effect of the midterms on stocks and 401(k)s
After Democratic victories in the U.S. midterm elections, indexes opened higher on Nov. 4: the Dow Jones rose 2.1%, the S&P 500 1.8% and the Nasdaq 2.5%. A Morningstar analysis of 100 years of returns found that stocks rise an average of 2.4% in Novembers of election years, versus 0.9% in non-election years. Strategist Dan Lefkovitz attributes the move to elections ending uncertainty.
In 35 seconds
- The Dow Jones opened up 2.1%, the S&P 500 1.8% and the Nasdaq 2.5% on Nov. 4.
- Morningstar: stocks rise 2.4% on average in Novembers of election years, versus 0.9% in non-election years.
- The analysis finds better returns under unified government (1.2% a month) than divided government (0.7%).
IASummary generated by artificial intelligence from a story by USA Today. It may contain errors: the original source prevails.




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