Bank of America Merrill Lynch told clients the market will drop into year-end due to the uncertainty caused by Donald Trump's election win.
"With Trump winning the election, expect heightened volatility and downside risk in the near term as polls and prediction markets until last night had been pointing to a Clinton victory," strategist Savita Subramanian wrote in a note to clients Wednesday.
"We expect lack of clarity around Trump's policies — from feasibility to prioritization — will likely weigh on sentiment and pressure already muted business investment."
Stock futures plunged overnight and sent safe havens like gold soaring on the election results. However, futures then rallied off their lows significantly Wednesday morning.