Local time Tuesday night, Trump and Harris had their first TV debate, and it is generally believed that Harris had the upper hand in the debate. It is believed that the asset performance, which is considered to benefit from Trump's victory, is not good, indicating that the market positioning is leaning towards Harris. However, strategists said that the price trend should not be overinterpreted, and the election is still very intense.
On September 11, Eastern Time, the stock price fell more than 16% at the beginning of the trading session. $Trump Media & Technology (DJT.US)$ The stock price once fell by over 17%, and market observers believe that the probability of Vice President and Democratic presidential candidate Harris winning has increased after the latest round of presidential debates.
Trump's media and technology conglomerate was established in February 2021 and was listed on NASDAQ in September of the same year. It is presided over by former US President Donald Trump.
Traders are further closing their positions related to bets on the former President and Republican presidential candidate Trump's victory in the election. As of the time of writing, Trump's media and technology conglomerate has fallen by 15.45%.
Local time Tuesday night, Trump and Harris had their first TV debate, which was also their first official meeting.
Harris and Trump had intense exchanges on multiple issues, including economic policies, the Russia-Ukraine conflict, abortion rights, and immigration. Unlike the previous debate between Trump and the current US President Biden, it is widely believed that Harris had the upper hand in this debate.
In addition to Trump's media and technology conglomerate, the US dollar index and Bitcoin also experienced a slight decline earlier. Trump has made it clear that he will support Bitcoin and has threatened to tax countries that do not use the US dollar. Therefore, these two assets are currently considered to be somewhat linked to Trump.
The asset performance, which is considered to benefit from Trump's victory, is not good, indicating that the market positioning is leaning towards Harris. However, strategists warn that the price trend should not be overinterpreted, and the election is still very intense, and the change in the outlook for the US economy may also be one of the reasons for some of these trends.
On the gambling website PredictIt, the odds of Harris winning the election have risen from 53% before the debate to 56%.
Mohit Kumar, Chief Financial Economist for Jefferies Financial in Europe, said that the debate did not produce a clear winner. Harris performed better than expected and her policies may not focus on tax cuts and fiscal expansion like Trump's.
Daniel Tobon, strategist at Citigroup, said: "We still expect the election in the coming weeks to be very close, and the market will give a certain premium to Trump's policies. Whether voters agree with the views of the gambling and financial markets remains to be seen."
Citigroup strategists believe that since tariffs are still a core part of Trump's economic policy, the US dollar will remain strong in November.
Editor/Lambor