Political events can substantially influence stock market performance as investor sentiment often reacts to changes in governance, policy decisions, and electoral outcomes. For instance, elections can lead to market volatility if investors predict significant shifts in regulation or fiscal policy. News of major legislation or political turmoil can also prompt immediate market reactions, reflecting concerns about stability and growth prospects. Moreover, the perception of a government’s economic competence can impact long-term investor confidence, making the stock markets sensitive to political developments.