Pennsylvania Election Holds Clues for Stock Market Fortunes
- Mid-terms bring weakest stock performance of four-year cycle
- Special election in Pennsylvania may signal fall fortunes
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At first glance, there’s little reason for equity investors to scrutinize Tuesday’s special congressional election in Pennsylvania. To hear it from analysts at RBC Capital Markets, there are reasons they should.
A defeat for President Donald Trump’s Republican party in the district outside of Pittsburgh may weigh on sentiment among conservative voters. They’ve been exceedingly optimistic lately, with a measure of consumer comfort among the group near record highs. For the past 16 months, the indicator has moved with an 89 percent correlation to the stock market, RBC data showed.