Wall Street investors are preparing for a potential red wave on Election Day, expecting major economic changes if Trump wins and Republicans control Congress.
A blue wave is seen as less likely, with predictions of increased government spending and borrowing costs.
“I think directionally you will see something that rhymes with it,” economist Erik Weisman said.
“What is going to matter is a red wave or not,” Loomis Sayles associate portfolio manager Mike Gladchun said.
A divided Congress and White House is not expected to impact markets significantly.
Polls show Trump leading over Biden in battleground states, with Trump perceived as better at handling the economy and immigration.
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