Post-election rally unlikely amid Fed rate outlook

By ALEX VEIGA
AP Business Writer

LOS ANGELES (AP) — The upcoming midterm elections could give the stock market a sorely needed boost by eliminating at least some of the uncertainty that’s clouding the way for investors. Historically, the benchmark S&P 500 index has gained ground in the months following a midterm election, regardless of the outcome, even when the market had been falling sharply leading up to the vote. The trend may offer some relief for wary investors, given the market’s punishing slump this year. But uncertainty over Fed rate hikes and the risk of a recession could dim the prospects for an enduring post-election bump.