What history can tell us about how stock markets react to civil unrest
Protests over the killing of George Floyd are both “alarming” and “enormously important,” analysts told CNBC on Tuesday, but it is unlikely the ongoing unrest will have a material impact on financial markets.
It comes after violent protests on Monday evening intermittently flared in New York City, Los Angeles and St. Louis, Missouri, though most of the demonstrations held overnight were peaceful.
President Donald Trump threatened on Monday to bring in the military if states and cities failed to bring an end to the unrest.
Despite the tensions, market participants appeared to remain focused on the reopening of the economy from the coronavirus pandemic.
At around 9:45 a.m. ET, the Dow Jones Industrial Average gained 70 points, or 0.3%, while the broader S&P 500 advanced 0.1%. The Nasdaq Composite slid 0.1%.
“U.S. investors tend to exceptionalize these developments and not expect that there will …continued .
[Source: CNBC News]