Historically, the stock market's behavior following the U.S. election.

Historically, after a presidential election, stocks tend to increase. However, investors should anticipate some short-term volatility beforehand.

On average, the three major benchmarks have experienced growth from Election Day to year-end in every presidential election year since 1980, as per CNBC data. Nevertheless, investors should not anticipate a direct upward trajectory in the market following the polls' closure.

CNBC data shows that the three indexes have averaged declines in the session and week following voting days, but stocks have typically recovered most or all of those losses within a month.

An immediate pop on Wednesday or the following days is not expected by investors.

The presidential race is currently very close and may not be decided by Wednesday morning. Additionally, Congressional races may require final counts before determining which party controls either house.

The election has become the focal point for financial markets, according to Amy Ho, executive director of strategic research at JPMorgan. However, she warned that uncertainty may persist regarding the election results' outcome, as the timeline for certifying results could take days for the presidential race and weeks for the House races.

The stock market has reached all-time highs in 2024, with a gain of about 20% during the first 10 months of the presidential election year, according to Bespoke Investment Group.