U.S. equity fell to the lowest level since July on Tuesday, the first trading day of November, as investors are concerned about the uncertainty of the economy ahead of the election.
“Earnings have been better than expected, and that would typically be a catalyst. But that is being negated by the noise on the political front,” said Bruce Bittles, chief investment strategist at Baird. “If [Donald Trump] were to win, that would set up a sort-of Brexit moment.”
The S&P 500 Index fell 0.97 percent to 2,105 at 3:11 p.m. in New York, momentarily breaking below 2,100 for the first time since early July. This also marked a six-day losing streak for S&P 500, the longest since August 2015. The Dow Jones industrial average also fell 156 points to 17,985.97 in the afternoon. The Nasdaq composite dropped 1.09 percent to 5,132.68.
“There’s not a major move on fundamentals, but with investors a little bit skittish, it does make sense to see some selling,” said Mike Bailey, director of research at FBB Capital Partners. “I think investors just have itchier trigger fingers right now.”
The equity selloff came after the latest poll raised concerned about the election uncertainty. An ABC News/Washington Post tracking poll that showed Republican Donald Trump with 46 percent support to Democrat Hillary Clinton’s 45 percent.
“So many people have said that if Trump wins there’s going to be some big downside event and with the polls tightening and revelations around Clinton, it just has traders looking to trade on the basis of that,” said Jim Paulsen, chief investment strategist at Wells Capital Management. “Then it caught some momentum, because we took out some of the lows technically where we’ve been at since it rallied to new highs.