uploads///Performance of Global Markets After the US Election Outcome

Why Emerging Markets Tumbled after Trump Election


Dec. 4 2020, Updated 10:53 a.m. ET

Performance of global indexes

Major indexes around the world showed huge negative fluctuations after Donald Trump won the US presidential election. Major indexes in the United States showed positive performances. Let’s see how those indexes performed from November 9–16, 2016.

  • The iShares MSCI ACWI (ACWI), which tracks the performance of various large-cap stocks around the world, fell 0.34%.
  • The iShares MSCI Japan (EWJ), which tracks the performance of Japan (DXJ), fell 0.82%.
  • The SPDR Euro Stoxx 50 ETF (FEZ), which tracks the performance of Europe (VGK) (IEV), fell 3.2%.
  • The iShares MSCI Emerging Markets (EEM), which tracks the performance of emerging markets, fell 7.3%.
  • However, the SPDR S&P 500 ETF (SPY) rose ~1.8%.
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Emerging markets fell significantly

The Emerging Markets index (VWO) fell significantly from November 9–16, 2016. Among emerging markets, China-tracking ETFs fell significantly. Trump believes that China’s manufacturing hub and low-cost production have been creating major problems for the United States.

Trump said during his campaign that he will put higher import duties on various Chinese products, which will promote the domestic market in the United States (SPY) (IWM). His protectionist approach could restrict the financial and trade flow between the United States and China.

The rising US dollar (UUP) is also a threat to emerging economies. As the dollar strengthens day by day, investors are worried about the performance of emerging indexes.

In the rest of this series, we’ll take a look at the performance of the dollar index from November 9–16, 2016. We’ll also analyze the performance of various sectors of the S&P 500 index during that period.

Let’s start by looking at the performance of the financial sector.


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