The First Round of the U.S. Election Debate Is Coming Up: Key Insights for Stock Investors
The first debate between Democratic President Joe Biden and Republican former President Donald Trump is scheduled for June 27. With only two debates scheduled, Thursday's clash is highly significant as both candidates intensify their personal attacks. National polls show them in a close contest, and millions of potential voters are expected to tune in.
The debate is important because it's an opportunity for two well-known candidates to 'reintroduce' themselves to a public that knows them well but hasn't been paying attention," said Donald Nieman, a political analyst and history professor at Binghamton University in New York state.
How Election Outcomes Affect the Stock Market
Despite the heated race, market dynamics remain unaffected, likely due to the election being too close to call. According to Rob Haworth of U.S. Bank Wealth Management, significant policy changes typically occur when one party controls the White House and Congress, a scenario that seems unlikely based on current polls. As the November election approaches, investors are increasingly focused on its potential impact on businesses, the economy, and capital markets. Despite the familiarity with the leading candidates, uncertainties remain about how policy changes based on election outcomes could affect the markets, according to Rob Haworth.
The stock market often experiences increased volatility as investors react to potential election outcomes. For instance, the $S&P 500 Index (.SPX.US)$ saw significant fluctuations during the 2016 race between Donald Trump and Hillary Clinton. Sector performance can vary based on the anticipated winner, with healthcare and energy stocks reacting to proposed policies on healthcare and climate change. The market's immediate reaction post-election can either be a rally if results meet expectations or a decline if outcomes are surprising, as seen in the rallies post-2008 election and the decline following the contested 2000 election.
Check Out Stocks That Could Benefit From Biden or Trump Win:
• What to Expect if Joe Biden Wins a Second Term
Clean Energy Focus: Biden's administration will likely continue prioritizing clean energy and environmental policies, benefiting sectors like renewable energy, electric vehicles, and energy efficiency technologies.
Healthcare Sector Stability: With ongoing efforts to expand access and reduce costs, a second term may further bolster the Affordable Care Act and other healthcare initiatives, leading to potential stability or growth in healthcare stocks, especially in managed care and pharmaceuticals.
Infrastructure Investment: Continued or increased funding for infrastructure projects could benefit sectors such as construction, engineering, and materials.
Regulation and Taxes: Higher corporate taxes and increased regulation for big tech and finance are expected, potentially impacting profitability in these sectors. Investors may need to diversify their portfolios to mitigate risks.
• What to Expect if Donald Trump Wins
Trade Relations and Tariffs: Focus on higher tariffs could negatively impact companies with international supply chains, particularly in consumer discretionary, industrials, and tech sectors. U.S. companies abroad might face retaliatory measures.
Domestic Producers Benefit: Higher tariffs may benefit domestic producers in steel, lumber, aluminum, and solar cells.
Deregulation: Reduced emphasis on green energy initiatives could benefit traditional energy and financial sectors due to a more relaxed regulatory environment.
Antitrust Enforcement: Less stringent antitrust enforcement might increase mergers and acquisitions activity.
Crypto: Earlier this month, Donald Trump met with Bitcoin mining leaders at Mar-a-Lago, voicing support for cryptocurrency and promising to advocate for the industry if re-elected. He also called for Bitcoin to be "MADE IN THE USA!!!" on Truth Social.
Source: UBS, The New York Times, Investing.com, Bloomberg
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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GM 1 : Why is Biden running again ? No younger better man to do the job? He looks like he needs a long rest …
ztock_boy : Bitcoin to be "MADE IN THE USA!!!"![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
what a ridiculous statement
Dontchaknowme GM 1 : Why are both candidates running again? Making America a joke…. Again.
also trumps a convicted felon, that’s a real good look.
GM 1 Dontchaknowme : Not convicted yet - If convicted then can’t run at all. Unless he’s convicted in your eyes then he will still be able to run LOL
Violets : hard to believe Banks will benefit more from Trump than Biden
戒贪2024 : $Riot Platforms (RIOT.US)$ If deep cooperation with Trump Media Group is suddenly announced, will the stock price suddenly skyrocket tenfold?
Isaac Cunningham GM 1 : There’s no law against a felon running for prseident