How Elections Influence Stock Market Trends

The stock market has generally performed well in the first year following the past five U.S. presidential elections, with the S&P 500 showing gains each time. Since 2004, low interest rates have supported market growth, with significant gains during Obama's terms due to near-zero rates and quantitative easing. Trump's term saw a strong market despite the COVID-19 pandemic, while Biden's presidency experienced high inflation and subsequent Fed tightening. As the 2024 election approaches, the market remains at record highs, but future performance may depend on interest rate policies and economic conditions.