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How have recent political events affected the stock market?

Linden Kimbrough

Well, let me tell you, recent political events have definitely shaken up the stock market! There have been a lot of ups and downs, and it's been tough to keep track of it all. With that being said, I'll do my best to break it down for you.

The main political event that has been affecting the stock market lately is the ongoing trade dispute between the United States and China. As you may know, the two countries have been going back and forth on tariffs and other trade policies for quite some time now. This has led to a lot of uncertainty for investors, and as a result, we've seen a lot of volatility in the stock market.

For example, let's take a look at the S&P 500. This is a stock market index that tracks the performance of 500 large companies listed on stock exchanges in the United States. In the first half of 2019, the S&P 500 rose by around 20%. However, since the trade dispute between the US and China escalated in May, the S&P 500 has been much more volatile. In fact, there have been several occasions where the index has fallen by more than 3% in a single day!

The trade dispute isn't the only political event that has been affecting the stock market, though. For example, the ongoing impeachment proceedings against President Trump have also had an impact. While the long-term effects of the impeachment are hard to predict, investors have been paying close attention to the proceedings and reacting accordingly. It's worth noting, however, that the impact of the impeachment on the stock market has been relatively small compared to the trade dispute.

Finally, there's Brexit. The United Kingdom's decision to leave the European Union has been looming over the global economy for several years now, and it's still unclear what the final outcome will be. As a result, investors are once again feeling uncertain, and we've seen some turbulence in the stock market as a result.

All in all, recent political events have definitely had an impact on the stock market. The trade dispute between the US and China has been the main driver of this volatility, but other events like the impeachment proceedings and Brexit have also played a role. It's hard to say what the future holds, but one thing is for sure: investors will need to keep a close eye on political developments moving forward.