US election key to market outlook for Dow

2020 has been a year of uncertainty where economies have been battered by the Covid-19 pandemic, with the stronger ones signalling a V-shaped recovery. As US markets head into the final quarter of the year, investors are also starting to price in the upcoming US presidential elections with approximately a week to spare.

In more recent news, negotiations on the second Covid-19 stimulus package are also weighing on investors' minds.

At the time of writing, the recent price correction in US indices might have stemmed from concerns that there was no agreement on passing the US$2 trillion economic relief package as of Oct 21, hinting at a possibility that negotiations could drag on till after the election day on Nov 3.