What's Next For The Market After Election Night? Normal Volatility, COVID-19 Concerns, Tax Talk

The outcome of the 2020 presidential election remains unclear, but investors may be able to breathe a sigh of relief.

Volatility Is Rational: If volatility strikes the stock market, it should be considered a "rational configuration, Allianz Chief Economic Advisor Mohamed El-Erian said on CNBC's "Squawk Box."

The fact that the Dow was trending lower ahead of Wednesday's market open but the Nasdaq was up notably is consistent with three realities on the ground, he said. These include:

• Little expectation for a big fiscal or stimulus package.
• The Federal Reserve will need to come to prevent "bad outcomes."
• Stay-at-home stocks will continue to benefit amid the COVID-19 pandemic.

Perhaps more notable, the COVID-19 pandemic continues to pose a risk of disrupting economic activity and different states will take different measures to contain the spread of the virus.

"We are going to play this divded country not only in Washington but also among states and its going to play out first and foremost on the COVID-front," said El-Erian.

Related Link: Why The Senate Matters More Than The White House To Investors On Election Day

Biden White House, GOP Senate: If former Vice President Joe Biden wins the White House but Republicans maintain control of the Senate, a "big downside risk" would be erased, AEI policy analyst James Pethokoukis told CNBC.

Democrat's proposals of higher corporate taxes would be "off the table" under this scenario, Pethokoukis said. In addition to no new taxes, the American public could see some form of a new stimulus.

But at the end of the day, struggling Americans are more concerned with dealing with their unique situation, Momentum Advisors CEO Tiffany McGhee told CNBC. This is especially true for Americans that will need to address the end to moratoriums on mortgage payments and rental properties on Jan. 1.

"I think that is what people are really thinking about," she said.