The recent debate between US Republican Donald Trump and Democratic Vice President Kamala Harris has caused a significant shift in investor positioning. Following the debate, betting markets swung in Harris’s favor, causing shares of Trump Media & Technology Group to fall 13 percent. Other Trump-related trades such as Bitcoin and crypto stocks also retreated, while solar stocks, which are seen as benefiting from a Harris win, rallied.
Despite the combative debate, which covered a range of topics, including the economy and immigration, investors were left with few new details on key issues that could sway markets. However, online prediction markets now show a stronger likelihood of a Harris win in November.
The impact of the debate was felt across various sectors of the market. Shares of Trump-related companies and operators of correctional facilities, viewed as likely to benefit from tougher immigration policies, fell. On the other hand, solar companies and health insurer stocks, which could be affected by Harris’s policies on drug prices, saw gains and losses, respectively.
Investors are closely watching the US presidential race, as political concerns intertwine with market catalysts such as worries over a potentially softening US economy and uncertainty over interest rate cuts by the Federal Reserve. While the S&P 500 has seen losses recently, some investors believe even a small shift in perceptions of the candidates could have a significant impact on the election outcome. With both candidates effectively tied in battleground states, market sentiment continues to adjust to the shifting political dynamics.
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Photo credit www.aljazeera.com
