Friday proved to be a shocking day from both a political and a financial standpoint. While the day was off to a normal start, things changed quickly in the afternoon as news with regard to the Hillary Clinton email scandal took center stage. Today, we'll talk about the news, how the US market reacted, why, and what binary options traders should be watching for ahead.
Why Friday Took A Quick Turn For The Worst
As mentioned above, Friday was proving to be a relatively normal day. All three blue chip indices were in the green and it was business as usual. However, in late afternoon, everything took a turn for the worst, and for good reason.
Late in the afternoon we started to see reports that James Comey, the director of the Federal Bureau of Investigation (FBI) has re-opened an investigation into Presidential candidate Hillary Clinton's emails. Here's what Comey had to say in a letter sent to Congress surrounding the investigation…
“In previous congressional testimony, I referred to the fact that the Federal Bureau of Investigation (FBI) had completed its investigation of former Secretary Clinton's personal email server. Due to recent developments, I am writing to supplement my previous testimony.
In connection with an unrelated case, the FBI has learned of the existence of emails that appear to be pertinent to the investigation. I am writing to inform you that the investigation team briefed me on this yesterday, and I agreed that the FBI should take appropriate investigative steps designed to allow investigators to review these emails to determine whether they contain classified information, as well as to assess their importance to our investigation.
Although the FBI cannot yet assess whether or not this material may be significant, and I cannot predict how long it will take us to complete this additional work, I believe it is important to update your Committees about our efforts in light of my previous testimony.”
How The Market Reacted To The News
It didn't take long for the US market to go into panic mode. In fact, within 15 minutes of the news being released, the Dow Jones fell from the green to the red in a drop of more than 100 points. We saw the same type of activity out of both the S&P 500 and the NASDAQ, with all three closing the day in the red.
Why The News Had This Affect On The Market?
This is where things get interesting. You see, Hillary Clinton is a Presidential candidate, and before this news, was the likely candidate to take the win. Now, this may shift opinions and lead to a stronger vote for Trump. While no one seems to be particularly excited about what either candidate will do for the economy, fear with regard to what would happen if Trump were to take office, or worse, what would happen if Clinton took office, only to be indicted later. At the end of the day, this news affects who will become the leader of the United States of America, and that's going to move the needle in the market.
What To Watch Ahead
Moving forward, binary options traders are definitely in for several opportunities to come. To take advantage of these opportunities keep a close eye on the news. While the investigation is still a concern, more details are coming out by the hour. At this point, we know that the investigation involves emails from a separate investigation that included Clinton's colleague. As these details continue to come out, they will give us clues as to how the market is likely to move ahead.
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