What Trump 2.0 or Biden 2.0 Could Mean for the Stock Market
President Joe Biden, 81, has stated he remains committed to his re-election campaign despite slipping polling numbers and concerns about his recent public performances.
Reports suggest Biden acknowledged the importance of his upcoming appearances, though the White House denies this claim. His stumbling debate performance and questions about his mental acuity have caused panic within the Democratic Party, leading to speculation about a potential replacement. The president attributed his debate struggles to fatigue from recent foreign trips and a cold.
If Biden were to step down, Kamala Harris, California Governor Gavin Newsom, and Michigan Governor Gretchen Whitmer are considered potential candidates, though the process for selecting a new nominee is unclear. Some Democrats, including Representatives Raul Grijalva and Seth Moulton, and $Netflix (NFLX.US)$ co-founder Reed Hastings, are urging Biden to withdraw. President Biden held a virtual meeting with 24 governors to reassure them of his capabilities, with some governors expressing continued support. His upcoming interview with ABC News will be closely watched for any further signs of weakness.
How Will the U.S. Election Affect the Stock Market?
During the first U.S. presidential debate, President Joe Biden and former President Trump sparred over various issues including abortion, immigration, and the economy. Despite Biden's shaky performance, both candidates defended their economic policies ahead of the November 5 election, which is highly contested according to polls.
In the financial sector, $JPMorgan (JPM.US)$ and $UBS Group (UBS.US)$ analysts outlined potential impacts on various stocks depending on the election outcome:
• Clean Energy: A Biden administration is expected to continue supporting clean energy incentives, benefiting companies like $First Solar (FSLR.US)$, $NextEra Energy (NEE.US)$, and $Sunrun (RUN.US)$.
• Electrification and Hydrogen: Stocks such as $Eaton (ETN.US)$, $Quanta Services (PWR.US)$, $Tesla (TSLA.US)$, and $Air Products & Chemicals (APD.US)$ could see gains under Biden's support for electrification and hydrogen production.
• Energy-Efficient Products and Recycling: Companies like $Johnson Controls (JCI.US)$, $Trane Technologies (TT.US)$, $Waste Management (WM.US)$, and $Republic Services (RSG.US)$ may continue to benefit from current government incentives.
• Oil and Natural Gas: Increased investment in oil and gas under a Trump administration could favor producers like $Exxon Mobil (XOM.US)$, $Cheniere Energy (LNG.US)$, and $ConocoPhillips (COP.US)$.
• Tariffs: A second Trump term might bring higher import tariffs, impacting the consumer discretionary sector but benefiting domestic manufacturers like $Ford Motor (F.US)$, $General Motors (GM.US)$, $Nucor (NUE.US)$, and $Steel Dynamics (STLD.US)$.
• Trump-Related Stocks: Stocks connected to Trump, such as $Trump Media & Technology (DJT.US)$, $Phunware (PHUN.US)$, and $Rumble (RUM.US)$, are expected to fluctuate with his election prospects.
• Prison Operators: Companies like $The GEO Group Inc (GEO.US)$ and $CoreCivic, Inc. (CXW.US)$ could gain from Trump's immigration policies.
• Pharmaceuticals and Insurers: A Republican government may reduce the risk of drug price cuts, benefiting companies like $Eli Lilly and Co (LLY.US)$, $Merck & Co (MRK.US)$, $Humana (HUM.US)$, and $UnitedHealth (UNH.US)$.
• M&A: A Trump administration might ease antitrust regulations, benefiting banks involved in M&A like $Goldman Sachs (GS.US)$, $Morgan Stanley (MS.US)$, $Lazard (LAZ.US)$, and $Evercore (EVR.US)$.
• Semiconductors: Domestic semiconductor manufacturers like $Applied Materials (AMAT.US)$, $KLA Corp (KLAC.US)$, $Intel (INTC.US)$, and $Texas Instruments (TXN.US)$ might receive support under Trump.
• Agriculture: Additional tariffs on Chinese imports under Trump could lead to more federal assistance for farmers, benefiting companies like $Deere (DE.US)$ and $Tractor Supply (TSCO.US)$.
Source: REUTERS, SKY NEWS
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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White_Shadow :
104749672 : Informative
Mathew Yetter White_Shadow : T hey are both pigs!
aaron1999x : Trump FtW
71780680 : why would anyone want more[Sigh]...seams to me people like the kolaid
102723010 : biden clearly cant control his brains, neither his speech... and you expect him to control a country
Steve Ng : @Casey Low
105064915 : I want to borrow 3 million.
71780680 102723010 : it's proof in the pudding....people are back to work money is flowing. we're paying stimulus money back. I'll stick with Biden and the lizard.... I just don't want anymore division between the people. with trump you can bet on mass kaos
Tricky Rick 71780680 : um. what? not a single thing you said was right. personal credit card debt is at an all time high. no one can afford anything, let alone pay back loans. the country is united under a single fact, we can't afford 4 more years of Biden
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