Do elections really matter for long-term stock market performance, or are investors better off focusing on earnings, economic fundamentals, and staying invested?

In this NYSE Live interview, Jay Woods, Chief Market Strategist at Freedom Capital Markets, discusses Election Day market dynamics, technology sector volatility, earnings season, inflation, interest rates, and why he believes investors should remain focused on long-term fundamentals.

Kristen Scholer spoke with Woods about historical market performance following elections, sector rotation, technology stocks, Apple earnings, Federal Reserve policy, and the outlook for equities through the remainder of the year and into 2027.

A major theme throughout the conversation is the relationship between politics and market performance. Woods argues that while elections often generate significant headlines and investor anxiety, historical market data suggests that long-term performance is driven far more by corporate earnings, economic growth, and business fundamentals than by political outcomes alone.

The interview also explores historical market trends following midterm elections. According to Woods, markets have often generated positive returns in the months following elections as uncertainty subsides and investors refocus on economic conditions and corporate profitability.

Another key topic is investor sentiment entering the seasonally strong period of the year. Woods notes that the months following Election Day have historically provided a favorable environment for equities, particularly when uncertainty surrounding major political events begins to fade.

The conversation further examines the recent pullback in technology stocks. While some investors have become concerned about weakness in AI-related companies and semiconductor firms, Woods believes much of the selling reflects profit-taking and portfolio rotation rather than a deterioration in underlying fundamentals.

A significant focus of the discussion is earnings season. Woods highlights strong performance across many large-cap technology companies and argues that earnings growth remains one of the most important drivers supporting the broader market.

The interview also explores Apple's latest earnings report. Despite strong product demand, record services performance, and continued ecosystem strength, investors focused on margin pressure and slower growth expectations following a particularly strong prior-year upgrade cycle.

Another major theme is sector rotation. While technology has faced pressure, Woods notes that other sectors including consumer staples, materials, healthcare, and energy have continued attracting investor interest and helping support broader market participation.

The discussion also highlights the importance of market breadth. A healthier market environment often features leadership from multiple sectors rather than reliance on a small group of technology companies.

Additionally, Woods discusses semiconductor companies such as AMD and Micron, arguing that market concerns may be overstating near-term risks relative to long-term demand trends tied to artificial intelligence and technology infrastructure.

The interview further examines labor market conditions and Federal Reserve policy. While inflation remains an important concern, Woods notes that employment trends have remained relatively stable and continue supporting the broader economy.

Another key topic is wage growth and consumer resilience. Economic momentum remains supported by spending activity, though inflationary pressures and higher energy prices continue presenting challenges.

The conversation also explores interest rates and the outlook for 2027. Woods believes markets can continue advancing even in a higher-rate environment, provided earnings growth remains healthy and inflation gradually stabilizes.

Looking ahead, Woods expects short-term volatility to remain possible, but believes investors who focus on earnings, business fundamentals, and long-term market trends may be better positioned than those reacting to political headlines alone.

Throughout the discussion, Woods shares insights on elections, stock market strategy, earnings season, technology investing, artificial intelligence, Federal Reserve policy, inflation, interest rates, market history, and long-term investing.

Disclaimer: Informational content only. NYSE does not endorse or recommend investments, strategies, companies, products, or services discussed.

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