What it is
A caucus is a method used by political parties in some U.S. states to select candidates for an upcoming election or to determine party policy. Unlike a primary election, where voters cast secret ballots, caucuses involve registered party members gathering in person, often in public forums, to discuss candidates and openly show their preference. Participants may move to different parts of a room to indicate their support for a candidate, and votes are tallied based on these groupings.
Caucuses are most prominently featured in the early stages of the presidential election cycle, with the Iowa caucus historically being the first major event. Their results can significantly influence public perception and media narratives about candidate viability, affecting campaign fundraising and momentum. While less common than primaries, caucuses can still play a decisive role in narrowing down the field of candidates, thereby impacting the potential policy platforms that markets and investors will later analyze.
Why it matters
Caucuses provide early indicators of candidate strength and voter preferences, shaping the political landscape and potential policy directions.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice