“The likelihood of [a split government] is now higher, but you also had the market down for nine days in a row, so you’re also getting a rubber-band effect,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. Financial markets in the U.S. and around the world had been largely pricing in a victory for Clinton over Republican nominee, Donald

Trump. Market expectations for Congress, meanwhile, had been for the House to remain under GOP control while the Senate flips in favor of the Democrats. “Assuming the election is as expected, … I think investors will pivot to the Fed,” Sonders said. “That said, if it’s a Trump win, the market will continue to focus on that.” READ MORE