S&P 500: According to Citi analysts, market sentiment toward the S&P 500 remains unusually optimistic heading into the 2024 US election. In contrast to prior election cycles, when posture often became neutral soon before Election Day, investors have maintained a fairly favorable expectation for the S&P 500 through October.

The study, conducted by Citi analyst Chris Montagu, reveals that this confidence is based on economic fundamentals like as inflation, job market statistics, and projected interest rate decreases, rather than the election itself. Compared to the 2016 election, when “Trump trades” soared, there is little indication that election-related speculation is impacting current market developments.

Furthermore, the S&P 500’s positive mood stands in stark contrast to European markets, where the Eurostoxx remains neutral and ETF flows are sluggish. This shows that, although the election takes center stage, the drivers of US stocks remain based in economic data, and market confidence is expected to last throughout the election season.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult a qualified financial advisor or conduct your own research before making investment decisions.