After the highly anticipated debate between US Republican Donald Trump and Democratic Vice President Kamala Harris, investors are adjusting their positions as betting markets shift in favor of Harris. Shares of Trump Media & Technology Group, as well as other “Trump trades” like Bitcoin and crypto stocks, fell while solar stocks rallied. The debate covered a range of issues, but left investors with few new details on key issues like tariffs, taxes, and regulation. Online prediction markets suggested an increased likelihood of a Harris win in November.
Political concerns are merging with market catalysts like worries over a potential softening US economy and uncertainty over Federal Reserve interest rate cuts. The S&P 500 experienced its worst weekly percentage loss since March 2023 last week. However, some investors believe even a small shift in perceptions of the candidates could make a significant impact in an election that could be decided by a narrow margin in key battleground states.
The debate impact was evident in the market, with Trump-related stocks like Trump Media & Technology Group taking a hit, while shares of solar companies and some healthcare stocks rose. Harris’s proposed tax policies were seen as potentially affecting corporate profits, while Trump’s promises of lower taxes and tougher trade policies could impact different sectors.
Overall, the debate provided a boost to Harris in what has been a closely contested race, with implications for various sectors of the market depending on the outcome of the election. Investors are closely monitoring political developments and adjusting their portfolios accordingly.
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Photo credit www.aljazeera.com
