Pennsylvania Is Getting Interesting. Market Volatility Ahead?

Pennsylvania Is Getting Interesting. Market Volatility Ahead?

The capital markets would likely experience volatility in the coming weeks should the U.S. Supreme Court take up the Trump campaign’s case regarding General Election results in the state of Pennsylvania. We expect the SCOTUS to do so.

On Wednesday Pennsylvania judge Patricia McCullough (R) halted further vote certification until her evidentiary hearing Friday morning at 11:30am ET. PA Secretary of the Commonwealth Kathy Boockvar (D) certified Joe Biden’s 80,555-vote Pennsylvania victory Tuesday and Governor Tom Wolf (D) appointed electors for the state. Boockvar on Wednesday appealed McCullough’s ruling to the Pennsylvania Supreme Court. We expect that the PA Supreme Court will rule in favor of Biden as it did earlier in the week, ultimately forcing the U.S. Supreme Court to hear the case.

Coverage has been limited on this issue. See Wednesday’s Pennsylvania Senate hearing (second video below). We don’t believe the markets have fully contemplated the potential outcomes for the state of Pennsylvania, nor for the states of Arizona and Michigan where similar hearings are scheduled, nor for broader potential outcomes beyond that.

U.S. Supreme Court Chief Justice John Roberts is not one to court controversy. However, Supreme Court Justice Samuel Alito has demonstrated a willingness to act regarding Pennsylvania’s election (HERE) and was not shy about voicing his concerns around COVID restrictions (below video).

Samuel Alito shares comments regarding Government COVID restrictions

State of Pennsylvania Senate Hearing from Wednesday November 25th.