Sully: How the election outcome will impact the stock market

SAN DIEGO (KUSI) – History shows that the home stretch of the U.S. presidential race is usually a positive one for U.S. stocks, but bulls will have to dig themselves out of a hole following Monday’s tumble in order to score a win in the eight-day runup to Election Day, according to KUSI Contributor Sully Sullivan.

Sully joined Good Morning San Diego to discuss what history says about stock market rallies in the days before a presidential election.

The S&P 500 has risen an average of 2.5% in the final few days before a presidential election running back to 1944.

The biggest rise by far came in the midst of the financial crisis, with the S&P 500 roaring back 18.5% in a bear market rally ahead of Barack Obama’s victory over John McCain.

The market subsequently slumped back to new lows, bottoming four months later before beginning what would become the longest bull market in history.

And even with Monday’s slide, the S&P 500 remains up around 2.7% since Aug. 3.

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