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Stocks Rally After FBI Says Nothing to Prosecute in Clinton Emails

  • Jim Randle

Specialist Frank Masiello, left, works at his post on the floor of the New York Stock Exchange, Nov. 7, 2016. Stocks opened sharply higher on Wall Street after the FBI said newly discovered emails didn't warrant any action against presidential candidate Hillary Clinton.

Specialist Frank Masiello, left, works at his post on the floor of the New York Stock Exchange, Nov. 7, 2016. Stocks opened sharply higher on Wall Street after the FBI said newly discovered emails didn't warrant any action against presidential candidate Hillary Clinton.

Stocks in the United States, Europe and Asia rose after the U.S. Federal Bureau of Investigation said it found no reason to prosecute presidential candidate Hillary Clinton when it examined the latest batch of her emails.

Investors frightened by the prospect of Republican Donald Trump winning the White House had pushed stock prices down for more than a week after the FBI director previously said the agency was examining newly-discovered emails from Clinton for evidence of wrong-doing.

At the close of Monday's trading, key U.S. stock indexes were up strongly, gaining around 2 percent. The advance ended the S&P 500's longest string of daily losses in several decades. Some investors also see Trump's pledge to drastically change the U.S. approach to trade, taxes and regulation as likely to depress the value of the U.S. dollar.

One-fifth of the companies in the S&P 500 mentioned "election" as they discussed risks to their business in recent conference calls with investors. The analysis by FactSet showed worries were strongest in the financial, consumer and industrial sectors.

Senate races a concern

Experts quoted in the financial press said investors see Clinton as a status-quo candidate, while Trump brings uncertainty. In a VOA interview, University of Kansas finance professor George Bittlingmayer said uncertainly makes investors "sit on their hands" and avoid the risks associated with opening a new factory, starting a new product line or expanding overseas. Without companies willing to take risks, economic growth and job creation can slow down.

While stock prices made gains when Democrat Clinton's chances of winning the presidency rose, an analysis by The Wall Street Journal shows a majority of recent campaign contributions from business going to Republican candidates for the U.S. Senate.

If the current Republican majority is overturned, a Democrat would head the Senate Banking committee, which the paper says would likely bring closer scrutiny and more regulation to the financial sector.

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