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Election night guide for investors: Here's what to watch

Published 10/28/2024, 09:52 AM
Updated 11/02/2024, 04:00 AM
© Reuters.

Investing.com -- With Election Night fast approaching, November 5 is set to be a critical evening for investors watching how political shifts may affect markets. 

For the presidency, most signs point to clarity within a couple of days after Election Night. Even with the tight polling in battleground states, Wolfe Research suggests that barring an unexpectedly strong showing from either candidate in key states, we’ll see decisive trends by the middle of the week, especially as results firm up in states like Pennsylvania and Wisconsin. 

However, these two states will likely take longer to report due to rules prohibiting early mail ballot processing, meaning that a close outcome there could delay the final call until all ballots are counted.

The Senate, on the other hand, should be decided more quickly. A Republican majority is widely anticipated, with the exception of a few tight races, particularly in Texas where Democratic candidate Colin Allred is challenging Republican incumbent Ted Cruz. 

If the Texas race is unexpectedly close, it may delay Senate outcomes, though other swing states with long-shot Democratic hopes, like Montana and Florida, are expected to conclude their races on election night.

The House, however, may be the longest to finalize, given close races and prolonged vote-counting procedures in key battleground districts. Some states, like California, have timelines that extend the collection and counting of mail ballots. 

Based on past cycles, Wolfe analysts suggest it may take about a week to determine the majority in the House if margins are narrow, but if races come down to a handful of seats, it could be several weeks before final tallies settle the chamber’s control.

With staggered poll closing times, early signals will emerge from counties and congressional districts that can shed light on broader national trends. Among the earliest results, Indiana and Kentucky close at 6 p.m. ET, with Indiana’s Hamilton County as a significant gauge. 

Traditionally leaning Republican, Hamilton County’s suburban voting patterns will be especially telling if Democratic candidate Kamala Harris is outperforming expectations there, signaling strength in suburban areas where the GOP typically performs well.

Georgia and Virginia, closing at 7 p.m. ET, will also be among the first bellwether states. Key counties to monitor include Gwinnett and Cobb in Georgia, which reflect both the growing diversity and shifting demographics in the Atlanta suburbs. 

Any movement toward Trump in these areas could suggest broader support for his platform in suburban regions, which would be critical in securing swing states across the Sun Belt.

In Virginia, two congressional districts—VA-2 and VA-7—will also indicate larger trends. Virginia’s 2nd district, historically a military-heavy and competitive seat, is a potential early sign of a stronger-than-expected Democratic showing if Democrat Missy Cotter Smasal performs well against Republican incumbent Jen Kiggans. 

On the opposite side of the state, VA-7 could reveal Republican strength if the GOP flips the open seat left by retiring Democrat Abigail Spanberger, signaling Republican momentum in key battleground areas.

As results move into the Midwest, Michigan’s Kent and Oakland counties will be focal points for gauging outcomes in the critical blue-wall states. Kent County, traditionally conservative but leaning Democratic recently, could be an early sign of a shift for either candidate. 

Oakland, a suburban powerhouse in Michigan, saw a strong Democratic surge in 2020, so a swing toward the GOP here could point to a broader challenge for Democrats across the Midwest.

If a decisive trend emerges early, it would come from shifts in key states with traditionally mixed outcomes. 

A strong Trump showing would likely manifest in Georgia and North Carolina by larger-than-expected margins, which could then point to a win in Michigan, solidifying his path to the White House. 

If Harris gains unexpected ground in states like Georgia or North Carolina, especially by small but significant margins, this could point toward an overall win, even if Midwest battlegrounds remain in play.

As Wolfe analysts noted, there have been fewer significant legal changes or disputes expected to hinder results this cycle, particularly in light of precedent set by 2020 and the measures battleground states have since taken to streamline certification. 

While Georgia has introduced stricter procedural requirements, recent court rulings have nullified rules seen as potential delays. Wolfe analysts remain confident that barring an unprecedented challenge, the election results certified after Election Day will stand.

For investors looking for timely updates, election analysts recommend following credible Twitter/X sources for real-time results and analysis. 

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