Investors are reacting to a shift in betting markets favoring Democratic Vice President Kamala Harris over US Republican Donald Trump following their recent debate. Shares of Trump-related companies, such as Trump Media & Technology Group, fell while solar stocks rallied. PredictIt’s presidential election market showed improved odds for Harris and decreased odds for Trump. Market concerns also include a softening US economy and uncertainty over interest rates.
The recent debate did not provide much new information on key issues like tariffs, taxes, and regulation, but investors believe Harris may have gained an edge. Analysts suggest a Harris win could impact sectors such as cryptocurrency, energy, and healthcare, while Trump’s policies could affect corporate taxes, tariffs, and the US dollar. Harris’s proposal to raise the corporate tax rate could potentially impact corporate profits.
Stocks of correctional facility operators, influenced by immigration policies, fell, while solar company shares rose. Health insurers like Humana and CVS Health also saw declines. Harris’s strategies for drug prices and taxes are under scrutiny, with analysts predicting potential effects on various sectors. Trump’s policies could benefit small-cap and cyclical companies, whereas a Harris presidency may support Treasury prices and large-cap growth and tech stocks. Overall, the debate has sparked market volatility and uncertainty as investors assess the potential impact of each candidate’s policies on the economy and various industries.
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