The presidential election saw some fluctuation in the stock market.

Certified Financial Planner with Journey Financial Tim Heisterkamp says ten days out from Election Day, the market saw lots of stocks being sold, but a few days before and after Election Day, there was a massive rally. He explains that the stock market likes gridlock in the federal government.

“I know around the coffee tables, people complain about gridlock in Washington, (D.C.). The stock market actually likes that. They don’t like one party being in control of everything, so they like a split government. So after the election, it looked like the Democrats could control the White House and the House of Representatives, but the Republicans would still control the Senate. The market liked that, it would slow everything down in Washington, (D.C.) and that is why the market rallied so much last week.”

Heisterkamp notes a similar situation to the 2016 election, but he adds the market also likes pro-business tactics. The market reacted well back then when there were lower tax rates and business regulations, which would result in better profits for businesses.