Stocks fall in October as Elections Weigh on Sentiment

US stocks broke even yesterday as they seesawed between red and black all day. Renewed concerns over an email investigation against Democratic US Presidential candidate Hillary Clinton kept investors worried.

The Dow Jones was 20 points lower, with Goldman Sachs contributing to the winners and Nike leading the decliners. The index also saw its narrowest single day trade range since September 7 and its third narrowest this fiscal year. This was also the last trading day of the month and all three indices, the Dow, S&P 500 and Nasdaq Composite each snapping a three month winning streak.

Investors are worried about the Brexit and would like a bit more clarity with who will be president in eight days. How will the balance of power in Washington settle after national elections?

FBI Director Comey weighs on stocks hurting Sentiment

The director of the FBI, James Comey sent a letter to lawmakers that he will be probing emails, newly found, related to Hillary Clinton. The FBI had also obtained a warrant. These emails were discovered during another investigation involving disgraced former Congressman Anthony Weiner.

Financial markets have already been pricing in a Clinton victory. With these fresh allegations of impropriety, things are in a disarray and polls are neck and neck once again. Everyone is glued to the news and this new scandal involving Clinton who is plagued by many accusations of impropriety.

There is a period of uncertainty brewing in the States. The prospects of a Clinton win leading to a resignation is now plausible. This is weighing on sentiment. A Trump win, on the other hand, is another set of problems. The United States is in a no-win situation short term.