The first presidential debate between Vice President Kamala Harris and former President Donald Trump has concluded, and the markets have chosen a winner.
What Happened: The aftermath of the debate on Tuesday saw a significant shift in the market, indicating that Harris may have emerged as the victor, Business Insider reported on Wednesday. The Trump Media & Technology Group‘s stock, the parent company of Truth Social, plummeted by as much as 18%. Bitcoin, which has been associated with the “Trump trade,” dropped by about 3% during the debate.
On the other hand, assets that could benefit from a Harris presidency, such as solar stocks, saw a surge. The Invesco Solar exchange-traded fund increased by approximately 4%, and individual stocks like First Solar and Sunrun experienced an 8% surge.
ING Economics noted, “Markets seem to have awarded Harris a victory.”
Meanwhile, assets associated with the “Trump trade” faced a downward trend post-debate. Shares of Trump Media & Technology Group, the holding company of Truth Social, plummeted by as much as 18%. Bitcoin, a cryptocurrency favored by Trump, also saw a 3% decline since the debate commenced.
However, the possibility of another debate in October and betting markets predicting an equal chance for both candidates leaves the election outcome up in the air.
Why It Matters: The debate between Trump and Harris has had a considerable impact on the investment landscape, as investors and markets adjusted their positions. Despite the heated exchanges, little new information on key market-influencing issues such as tariffs, taxes, and regulation was provided. However, online prediction markets indicated a stronger likelihood of a Harris win in the upcoming November elections.
Trump’s chances of winning the election have dipped below 50% in the betting odds, indicating a shift in momentum towards Harris. This shift has led to a downturn in Trump Media & Technology Group DJT shares and a surge in solar stocks.
Despite the current market indicators, with the possibility of another presidential debate in October and betting markets giving both candidates about a 50-50 chance, the election outcome is still anyone’s guess.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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