Impact of the 2020 U.S. Presidential Election on the S&P 500 and Nasdaq Indices
DOI:
https://doi.org/10.54097/k3sjdw73Keywords:
2020 U.S. Presidential Election, S&P 500, Nasdaq Indices, Market Volatility, ARIMA Model.Abstract
The study explores the impact of the large political event of the 2020 U.S. presidential election on the S&P 500 and Nasdaq indexes amid a backdrop of deep political and social divisions exacerbated by the COVID-19 pandemic. The study uses the ARIMA model to conduct in-depth analysis to assess the volatility and performance of these indices before and after the election, with the aim of understanding changes in market sentiment. The research reveals different market performance and sentiment changes under such political evensts, providing insights into specific industry reactions. The findings highlight the impact of elections on market trends and investor behavior, providing novel insights for investors and policymakers dealing with market uncertainty during major political events. This study highlights the importance of considering the impact of political events in financial market analysis and contributes to the literature by focusing on the performance of specific indices and employing advanced forecasting methods to predict market movements.
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