Wall Street took another tumble Wednesday, falling 3 percent across the board.
BOISE, Idaho — Just days before the election and eyes have turned to the economic slowdown as COVID-19 cases continue to spike across the country.
Industries like travel and tourism continue to struggle as another wave threatens to further put Wall Street in the red.
Stocks took another tumble Wednesday, falling 3% across the board.
And with Congress still unable to reach a compromise on another stimulus bill, economists say it’s unlikely an agreement will be reached before Election Day.
The stock market continues to slide thanks in part to uncertainty over the election and new COVID outbreaks around the world impacting the global company.
“This past week with the explosion (of cases) going on in Europe as well as the earnings being ignored right now, people are focused on the election next week and if all these other countries are going to close back up,” said Boise financial expert Dave Petso.
Despite downward market trends over the last week, the economy is actually exceeding expectations from earlier this year, according to Petso.
“We have a ways to go to get back to where we were in February before the start but the reality is we are going to be going up 30-plus percent tomorrow, the first print of the third-quarter GDP. An unheard-of number before,” he said.
Despite new positive earnings reports though, the market has dropped over the last two weeks. That can likely be attributed to a perfect storm of uncertainty.
“Rather than saying there is a lot of selling going on, it just really means there isn’t a lot of buying going on. It doesn’t take a lot of selling to knock the market down when there are just no buyers out there,” Petso said.
Some good news though for Idaho, the economy has continued to look strong in recent months despite COVID-19 impact worries from earlier this year.
“Overall the economy really is good,” Petso said. “It doesn’t mean it’s great for every individual, it’s not and it never is. But by and large, Idaho has a tremendous amount of tailwinds and has done a very good job. We are in good shape as a state, we were pretty conservative in our budgeting, so Idaho bonds are great, interest rates are low. It’s a very good environment for Idaho.”
So, will the markets start to rebound after election day? There are a lot of factors to consider, including when election results will become clear.
“That causes uncertainty as well,” Petso said. “If that becomes contested or contentious and lasts more than a few days I think that is a big weight on the market as well,” Petso said. “No matter the ultimate outcome, people are going to wait, they are going to be reacting to that kind of uncertainty.”
In terms of the impact the presidential race is having on the day-to-day market, Petso said Trump vs. Biden feels different.
“People put so much weight on Republicans or Democrats do better, but the market does fine under both,” he said. “The way this is different though, this is very, very extreme, the most extreme of my lifetime, certainly since the early 70s.”
A big uncertainty that is dependent on the outcome of the election is tax and economic plans from each party. Attention has been put on Joe Biden’s tax plan as well as policies the Trump administration has put in place during his presidency.
Petso’s advice for the next week? Don’t panic.
“It really needs to be you controlling yourself and your emotions about this,” he said. “Don’t get carried away. It’s okay to be cautious, just don’t do this all or none running around, ‘I got this thing timed.’ You won’t win, I promise. You won’t win.”
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