Election uncertainty during midterm years historically suppresses S&P 500 returns and increases volatility, but this weakness is typically followed by strong recoveries once elections conclude.

"Since 1954, the S&P 500 has posted an average annual return of just 4.6% during midterm years, the lowest among the four years of the presidential cycle... Despite the near-term volatility, markets have historically staged powerful recoveries once the elections conclude. LPL data shows the S&P 500 has delivered positive returns in all 18 post-midterm periods since 1954, generating an average gain of 18.2% over the following 12 months."