The stock market has been extremely volatile in the past several months — selling off when coronavirus cases surged and rebounding on hopes for an economic recovery. But the Surpreme Court ruling is forcing investors to think about the presidential election in November, adding more uncertainty into an already murky future.
The ruling might have unnerved some investors who until now didn't take former Vice President Joe Biden's bid for the White House seriously, said Fawad Razaqzada, market analyst at ThinkMarkets.
Traditionally, a Democratic administration would be seen as less business-friendly than a Republican one, though this election cycle seems to be turning that idea on its head as stocks have risen even as Biden has pulled ahead in polls.
Stocks were mixed ahead of the ruling, but dropped firmly into negative territory after its release.
For a long time during this term, Trump was considered a relatively market-friendly candidate, not least because of his promises of a massive infrastructure bill and now because of unprecedented fiscal stimulus to get the economy through the pandemic recession.
Matt Egan and Eric Bradner contributed to this report.
Clarification: A previous version of this story and headline mischaracterized the Supreme Court's ruling. The court did not compel the President to hand over his returns, but held that prosecutors may seek those documents.