It may take weeks to tally the midterm election results. Here’s why Wall Street isn’t worried.

The midterm elections are a significant event in the US, but Wall Street appears to be taking a wait-and-see approach, unfazed by the potential delay in tallying the results. This is because economic uncertainty, rather than political uncertainty, is what truly drives market movements. The distinction between the two is crucial, as economic fundamentals such as inflation, interest rates, and corporate earnings tend to have a more lasting impact on stock prices.

The current economic landscape is characterized by a mix of positive and negative factors, including a strong labor market, rising interest rates, and ongoing trade tensions. As such, investors are likely more focused on how these factors will influence the economy and corporate profits, rather than the outcome of the midterm elections per se. While the elections can have an impact on policy and regulatory environments, their influence on the overall economic trajectory is often limited.

Looking ahead, investors will be watching for signs of how the delayed election results may impact policy developments, particularly with regard to issues like taxation, healthcare, and trade. Additionally, key economic indicators such as inflation data, GDP growth, and corporate earnings reports will likely continue to drive market sentiment in the coming weeks. As such, fund managers and investors would do well to keep a close eye on these fundamental drivers of market performance, rather than getting caught up in the noise of the election results.

Originally reported by marketwatch.com. FundNews adds analysis for finance & markets readers.