The recent debate between former President Donald Trump and Vice President Kamala Harris has stirred up the investment landscape. The event has led to a shift in betting markets towards Harris, triggering a downturn in Trump Media & Technology Group (NASDAQ:DJT) shares and a surge in solar stocks.
What Happened: The debate, which took place on Tuesday, initially caused the dollar to dip against Asian currencies, but it later rebounded following the release of U.S. consumer price data. U.S. cryptocurrency shares and Bitcoin (CRYPTO: BTC) also experienced a drop in premarket trading, while U.S. dollar was down 0.2% against a basket of currencies, and stock futures were down around 0.3%, Reuters reported on Wednesday
Despite the intense exchanges between Trump and Harris, investors were left with little new information on key market-influencing issues such as tariffs, taxes, and regulation. However, online prediction markets indicated a stronger likelihood of a Harris win in the upcoming November elections.
Alvin Tan, head of Asia FX strategy at RBC Capital Markets in Singapore, noted a "general view that Harris won the debate."
"It's obviously not a slam dunk for Harris, but the chances of a Trump victory have slipped a bit."
U.S.-listed shares of solar companies, which are expected to benefit from a Harris win, rose between 2.2% and 7.2% in premarket trading. Conversely, shares of Trump Media & Technology Group, popular among retail traders and sensitive to Trump's election chances, were hit hard.
Charu Chanana, Head of FX Strategy and Global Market Strategist at Saxo, stated that the debate provided a decisive edge in a close race, potentially impacting crypto and energy stocks as market sentiment adjusts to shifting political dynamics.
Why It Matters: The debate's outcome has significant implications for the markets. A flash poll indicated that 63% of registered voters who watched the debate picked Harris as the winner.
Prior to the debate, Wall Street was already experiencing a downturn, with stocks trading in the red as investors awaited the presidential face-off. The energy and financial sectors were witnessing deeper losses, sharply underperforming the rest of the market.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
