After a summer lull, equity market turbulence is back. Last week marked the worst week for global stock indices since March, with the MSCI All Country World Index falling by 5.3 per cent over the five sessions. In the US, the S&P 500 lost 5.6 per cent, while the more tech-heavy Nasdaq Composite fell 5.5 per cent. Those falls came despite a series of impressive results for US tech groups and a strong rebound in the economy’s growth in the third quarter. Along with rising caseloads of Covid-19, uncertainty surrounding the outcome of Tuesday’s presidential election between incumbent Donald Trump and his Democratic rival Joe Biden lies behind these jitters.

The market turbulence reflects real fears that the election result will prove inconclusive, leading investors to panic that a volatile political climate could trigger violence and derail the economy. However, if that scenario is avoided there are reasons to be upbeat about how US markets could perform post-election.

No matter who wins on Tuesday, the market is likely to get the fiscal stimulus that investors have been asking for. If Mr Trump manages to pull off a surprise win, then he has pledged to unleash a “very big” package. However, analysts think the real boon for equities would be a “blue wave”, where Democrats take not only the White House but both houses of Congress too. Mr Biden has said he will devote $2tn to mitigating climate change, as well as trillions of dollars to strengthen the safety net for more economically deprived Americans. If the Democrats control both arms of government, then such a package becomes a real possibility.