Investors are reeling after the recent debate between US Republican Donald Trump and Democratic Vice President Kamala Harris, which saw betting markets shifting in favor of Harris. Shares of Trump Media & Technology Group, Bitcoin, and crypto stocks fell, while solar stocks rallied, and healthcare shares dropped. While the debate did not provide many new details on key market issues, predictions now show a stronger likelihood of a Harris win in November. Some analysts believe a Harris victory could impact sectors like crypto, energy, and healthcare stocks.
The S&P 500 had its worst weekly loss in March 2023 following economic concerns and uncertainty over interest rates. While the race remains close, any slight shift in perceptions of the candidates could be crucial in deciding the election. Trump’s pro-cryptocurrency stance has garnered attention in the market, and his policies on taxes and tariffs differ significantly from Harris’s. Harris’s proposals to raise corporate taxes could impact corporate profits, while her plans to lower drug prices may affect healthcare stocks.
Investors reacted to the debate by selling shares of Trump’s media company and companies expected to benefit from a Trump win, while investing in solar stocks linked to a potential Harris victory. Trump’s policies could boost small-cap and cyclical companies, while Harris’s focus on tax benefits could benefit families and small businesses. This debate has highlighted the potential market impact of the candidates’ policies, with investors closely watching for further developments.
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