This paper investigates the impact of the 2024 U.S. Presidential Election on stock market performance using event study methodology. Focusing on cumulative abnormal returns (CARs) across multiple event windows, the analysis reveals significant and sector-specific reactions to Donald Trump’s election victory. Financials, energy, transportation, and select technology sectors experienced strong positive CARs, particularly in the immediate aftermath of the election, suggesting investor expectations of favorable policy shifts. Conversely, healthcare and semiconductor sectors exhibited negative or insignificant returns, reflecting concerns over regulatory and fiscal policy changes. The results underscore the speed and heterogeneity of market responses to political transitions, highlighting how investor sentiment varies across industries in anticipation of policy realignments. These findings contribute to the broader literature on political uncertainty and asset pricing, offering updated empirical evidence on market behavior surrounding high-stakes electoral events.
John Jasina (Thu,) studied this question.
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