Stock futures plunged and bonds rallied as the outcome of the presidential election remained much tighter than expected.
Investors moved into bonds and stock futures fell as traders questioned whether Democrat Hillary Clinton could win the race, as expected. The Mexican peso fell sharply against the U.S. dollar.
“I would say the market is a bit more cautious as it doesn’t seem to be such a quick and decisive victory for Hillary as it seemed,” said Ian Lyngen, head of U.S. rate strategy at BMO. “But it’s not over yet.”
Traders watched for an outcome from Florida, a state that is still considered too close to call by NBC. Florida’s battle has been tense and was separated by only a single percentage point with 91 percent of the vote in, according to NBC.
“Trump needs to win Florida, but he also needs to win Pennsylvania,North Carolina and New Hampshire. Even if he wins Florida he still has a big hurdle in front of him,” said Dan Clifton, head of policy research at Strategas. “Florida’s close, so the question how does he do in … those other states. It’s early.”