Several market sectors linked to Donald Trump’s potential second term faced notable volatility following a highly anticipated debate with Kamala Harris, according to a report by Lynn Thomasson for Bloomberg. Traders have begun scaling back bets tied to a Trump victory, with Trump Media & Technology Group Corp. (NASDAQ: DJT) shares dropping over 11%.
Bloomberg noted that Bitcoin, a cryptocurrency advocated by Trump, also retreated slightly, while the dollar showed brief weakness before recovering.
The debate also fueled gains in green energy stocks, with the Invesco Solar ETF rising by 3%, as speculation grows that a Harris administration would push for increased funding for renewable energy projects. Bloomberg reported that investors are cautiously shifting their market positioning, anticipating that a Harris win could favor the clean energy sector over traditional energy plays linked to Trump.
Despite these moves, Bloomberg highlighted that market strategists remain cautious about reading too much into the short-term price actions. Francesco Pesole, a currency strategist at ING Bank, noted that while markets seem to be leaning toward Harris as the debate’s winner, broader macroeconomic factors could ultimately influence asset performance in the coming weeks. Bloomberg also pointed out that Harris’s odds of winning the election increased to 56% on PredictIt, but strategists like Jefferies International’s Mohit Kumar warned that the race is still close.
Bloomberg further noted that Trump Media, often seen as a proxy for Trump’s election odds, remains highly volatile. The expiration of a lockup period on 19 September could add further market swings, as insiders, including Trump himself, may be allowed to sell shares.
In the meantime, strategists at Citigroup Inc. signaled that the dollar could maintain strength in the lead-up to November, given Trump’s tariff policies. However, they advised that it is too early to make definitive market bets on the outcome of the election, as monetary policy factors may outweigh political speculation in the coming weeks.
The first 2024 presidential debate between Donald Trump and Kamala Harris saw the vice president dominate from the start, according to a report by CNN. Harris immediately took control by forcing Trump into an awkward handshake, setting the tone for the rest of the evening. Throughout the debate, Harris remained poised and energetic, while Trump, often combative in debates, seemed off his game. Harris repeatedly baited Trump into angry outbursts, strengthening her narrative that he is unfit for a second term.
CNN reported that Harris delivered a polished performance, focusing on key issues like easing the burden on working Americans, tackling rising grocery and housing prices, and offering a positive vision for the future. Trump, by contrast, leaned heavily on a dark, dystopian message, repeating claims of America’s decline. This rhetoric, according to CNN, didn’t resonate well with swing-state voters, who may be looking for more optimistic leadership.
Despite his past debate successes, Trump failed to capitalize on his opponent’s weaknesses. Instead of challenging Harris on key vulnerabilities like the southern border or the chaotic Afghanistan withdrawal, Trump veered into tangents more familiar to his core base. CNN noted that these missed opportunities could hurt him among moderate voters who expected more from his performance.
Harris, meanwhile, used the debate to present a clear contrast with Trump, highlighting his divisive history on issues like race and immigration. She avoided major mistakes and, according to CNN, proved that Democrats made the right choice in nominating her over President Biden.
While Harris may have gained ground, CNN emphasized that debates rarely decide elections. Trump still holds an edge on issues like the economy and immigration, and shock events in the coming weeks could still shift the political landscape.
Featured Image via Pixabay
