S&P 500; US Indexes Fundamental Forecast – November 9, 2016

U.S. equity futures markets are plunging early Wednesday as global investors react to a strong showing by Republican candidate Donald Trump in the U.S. presidential election. Current returns show the election is too close to call at this time 0250 GMT, which suggests it may go down to the wire. Global investors are taking no chances and are aggressively protecting themselves against the strong possibility of a Trump victory.

Clinton is called the status quo candidate. Trump is the candidate for change. Clinton has more stable policies. Trump is an outsider and could shake up the way things are run in the U.S. especially if Congress remains under Republican control.

After dropping 750 points earlier, December Dow Jones Industrial futures are trading at 17607, down 678 points, or -3.71% at 0250 GMT. The benchmark December E-mini S&P 500 Index is trading 2039.50, down 96.00 or -4.50%. December NASDAQ-100 Index futures are down 219.25 or 4.57% at 4583.00.

According to NBC News, Donald Trump was the projected winner in several states:  Alabama, Arkansas, Mississippi, Oklahoma, Tennessee, Indiana, West Virginia, South Carolina, Kansas, Missouri, Montana, Nebraska, North Dakota, South Dakota, Texas, Wyoming, Louisiana and Kentucky.

Hillary Clinton was the projected winner in eight states:  Connecticut, Delaware, Illinois, Maryland, Massachusetts, New Mexico, New Jersey, New York, Rhode Island, and Vermont. She is also projected to win in D.C.

Based on the current price action, the U.S. markets could plunge further later in the session if Trump is declared the official winner.

If Clinton rebounds late then look for the markets to gain back all of their losses. However, because of the way the country is split between the two candidates, investors may not feel too confident moving forward so there may be no reason to celebrate a Clinton win.