Department-store stocks rallied. Kohl’s Corp. jumped 12 percent after saying back-to-school sales were strong. Macy’s Inc. surged 5.6 percent after hiring Brookfield Asset Management to squeeze more money out of its real estate holdings. The largest U.S. department-store company posted another quarter of declining sales. Nordstrom Inc. surged 7.2 percent and Urban Outfitters Inc. added 5.6 percent.
The CBOE Volatility Index rose 3.7 percent on Thursday. The measure of market turbulence known as the VIX reached a four-month high on Friday. U.S. stocks had been heavily hedged as volatility surged leading up to the vote on speculation a Trump win had the potential to rattle markets as he had pledged to clamp down on international trade deals, while adopting divisive rhetoric throughout his campaign.
In the 22 elections going back to 1928, the S&P 500 has fallen 15 times the day after polls close, for an average loss of 1.8 percent. Stocks reversed course and moved higher over the next 12 months in nine of those instances, according to data compiled by Bloomberg.
With the election uncertainty out of the way, investors are also weighing prospects for the timing of the Federal Reserve’s next rate increase. Odds for a December move have increased to 82 percent from 78 percent a week ago. A report today showed jobless claims declined from an almost three-month high ahead of the election.
This article was provided by Bloomberg News.