But the news immediately spooked investors. Futures tied to the Dow Jones industrial average “indicated an opening loss of more than 400 points, recovering a bit after earlier trading down more than 500 points. S&P 500 futures and Nasdaq 100 futures were also in negative territory,” CNBC’s Eustance Huang and Pippa Stevens report.
The development throws a major unknown into the election at a time when uncertainty over voting and its outcome already has been weighing on investor sentiment. “Market sentiment was already delicately balanced ahead of the November election, and today’s news only adds to the uncertainty,” Karen Ward, chief market strategist for EMEA at J.P. Morgan Asset Management, told Bloomberg’s Yakob Peterseil. But, she said, “with such a wide range of outcomes and implications stemming from the President’s diagnosis, it’s too soon to ascertain what the final market direction will be.”
The market’s record suggests investors quickly absorb and move past history-bending shocks.
As we wrote here in January, when the market shrugged off threats of a briefly threatened conflict with Iran, “Twenty days after President John F. Kennedy’s assassination, for example, the S&P 500 was up 6.3 percent,” according to data from Strategas technical analyst Todd Sohn. “It was up 9.7 percent after the same interval following the 1987 stock market crash; 5.3 percent after the bombing of the USS Cole; 4.9 percent after the Sept. 11, 2001, terrorist attacks; and 6.4 percent after the Brexit referendum.”
Here’s another look at how quickly the market rallied back from some defining disruptions of the last 80 years, via of LPL Financial:
In this case, in the immediate term at least, the development could prove more vexing, since it injects a host of unknowns not only into the election but the country’s governance as well. Per the