"Trump Trades" Cool Off, Electric Vehicles and Solar Stocks Surge, Oil Stocks Decline

Following President Biden's announcement of withdrawal from the presidential race, stocks expected to benefit from a "Democratic victory," such as renewable energy, solar companies, electric vehicle manufacturers, and cannabis stocks, began to rise. Meanwhile, "Trump trades" like oil and gas, financials, and healthcare stocks began to cool. Analysts suggest that if Harris becomes president, she may adopt more aggressive environmental policies than Biden, strengthening her position as a formidable opponent to the oil industry.

Investors are revisiting their 2016 playbook for the 2024 "Trump trade." Analysts argue that Trump 2.0's stance on technology, antitrust issues, and tax cuts differs significantly from before, suggesting that strategies from 2016 may not necessarily apply in 2024.