Due to US President Biden's announcement to withdraw, stocks that benefit from the 'Democratic Party wins', such as renewable energy, solar energy companies, electric vehicle manufacturers, and cannabis stocks, began to rise. Meanwhile, 'Trump Trade' stocks, such as oil and natural gas, finance, and medical care stocks, began to cool down.
Analysis indicates that if Harris becomes president, she may adopt more radical environmental policies than Biden, strengthen supervision of oil companies and other polluting enterprises, and become a stronger "opponent" of the petroleum industry.
US President Biden announced his withdrawal from the presidential race and supported Vice President Harris as the presidential candidate, and investors recalibrated their investment decisions.
On Monday, July 22nd, Eastern Time, stocks that benefited from the "Democratic Party winning", such as renewable energy, solar energy companies, electric vehicle manufacturers, and marijuana stocks started to rise, while the "Trump deal" such as oil and natural gas, financial and medical care stocks began to cool down.
Jaret Seiberg of Cowen Inc 7.75% senior notes due 15/06/33 usd25 commented on this:
"Biden's decision to withdraw from the presidential race is equivalent to resetting the entire election situation, reducing the certainty of Trump's victory, increasing the risks in the financial and cryptocurrency markets, but may be favorable to the real estate market."
Because the Democratic Party is more supportive of the renewable energy and green energy fields, and the Biden administration strongly promotes the electrification of transportation, while Trump claims to completely reverse Biden's electric vehicle policy, overnight photovoltaic stocks and electric vehicle concept stocks rose generally at the beginning of Monday's trading.
1) Photovoltaic stocks:
$Daqo New Energy (DQ.US)$up 13.6%, leading the gains,$First Solar (FSLR.US)$which rose more than 4.1% during trading,$Canadian Solar (CSIQ.US)$ADR rose more than 4%,$Maxeon Solar Technologies (MAXN.US)$which had risen more than 8%,$Sunrun (RUN.US)$which rose more than 5.1% at one point during trading, SunPower had risen more than 11.6%,$Enphase Energy (ENPH.US)$up more than 3.4% at the beginning of trading,$Plug Power (PLUG.US)$up more than 2% at the beginning of trading, and$Invesco Solar ETF (TAN.US)$which had risen more than 1.1% at one point during trading.
2) Electric vehicle concept stocks:
$Tesla (TSLA.US)$which had risen more than 5.1% at one point during trading,$Rivian Automotive (RIVN.US)$which had risen more than 4%.$Lucid Group (LCID.US)$Charging network operator that had once risen over 3.7%. $ChargePoint (CHPT.US)$Once rose over 3%.$Beam Global (BEEM.US)$Once rose over 2.7%.$Blink Charging (BLNK.US)$Rose over 2% at the start of the session.$XPeng (XPEV.US)$Rose over 6.9%.$NIO Inc (NIO.US)$rose more than 5%.$ZEEKR (ZK.US)$Rose over 4.3%, and the ideal increase once exceeded 4.4%.
In addition, cannabis stocks have attracted attention due to the Democratic Party's friendly attitude toward the cannabis industry.
However, petroleum stocks have fallen across the board:
$Chevron (CVX.US)$Fell more than 1.2% mid-session, $Exxon Mobil (XOM.US)$The decline widened by more than 1.2%, $ConocoPhillips (COP.US)$Fell more than 1.8%.
Harris is seen as a more aggressive opponent of the petroleum industry than Biden.
As attorney general of California, Vice President Harris displayed a strong stance on environmental protection. She has filed lawsuits against multiple fossil fuel companies, sued a pipeline company over oil spills, and investigated whether ExxonMobil misled the public on climate change.
Analysts believe that Harris is more aggressive against fossil fuel development than Biden. For example, Biden temporarily suspended offshore oil lease sales in his first week in office, but he did not fully fulfill his campaign promise to completely ban new oil and gas permits on public lands and waters. Harris may take stricter measures, such as completely banning new oil and gas permits and implementing more environmental protection regulations to further restrict the development of fossil fuels. Democratic Congressman Jared Huffman said in an interview:
"She is the kind of leader who will hold the fossil fuel industry accountable, and that's exactly what we need right now. She will absolutely continue and expand the Biden administration's success in climate and clean energy."
Analysts and environmental advocates believe that Harris' attitude towards fossil fuel development is more aggressive than Biden's. For example, while Biden temporarily suspended offshore oil lease sales, Harris may take stricter measures such as completely banning new oil and gas permits, and implementing more environmental protection regulations to further restrict the development of fossil fuels.
Harris' policies may have a significant impact on the oil and gas industry and may lead these companies to face stricter regulation and higher operating costs. Under Harris' leadership, renewable and clean energy projects may receive more support and investment to accelerate the transition to a low-carbon economy.
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