{"id":88888,"date":"2024-07-30T15:00:00","date_gmt":"2024-07-30T12:00:00","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=88888"},"modified":"2024-07-30T09:24:59","modified_gmt":"2024-07-30T06:24:59","slug":"how-a-kamala-harris-candidacy-could-impact-the-stock-market","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/ms\/how-a-kamala-harris-candidacy-could-impact-the-stock-market\/","title":{"rendered":"How a Kamala Harris candidacy could impact the stock market"},"content":{"rendered":"<p>For over a year, Wall Street has speculated that Joe Biden might lose enough of his mental faculties to be forced out of the 2024 presidential race.<\/p>\n\n\n\n<p>By early 2023, it was becoming clear to investors that Biden was unfit to lead the country, and even less suitable for a second term.<\/p>\n\n\n\n<p>With Biden now out of the race, it\u2019s not just a major political event but also a significant market and economic issue.<\/p>\n\n\n\n<p>Markets hate uncertainty, and last week\u2019s selloff following the Dow\u2019s all-time high, was partly driven by uncertainty about who former President Donald Trump and JD Vance will be running against.<\/p>\n\n\n\n<p>This uncertainty also led to fears on Wall Street that Biden might withdraw just before his just before his official nomination at next month\u2019s Democratic National Convention and endorse his less competent vice president, Kamala Harris. Despite polls showing Harris with a chance to win the presidency, this scenario would further shake investor confidence.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Upcoming week: Key questions and investor concerns<\/strong><\/h2>\n\n\n\n<p>The next week promises to be very interesting. Key questions you\u2019ll be hearing in the coming days include:<\/p>\n\n\n\n<p>If Biden isn\u2019t healthy enough to run for president, then how is he fit enough to be president?<\/p>\n\n\n\n<p>Why isn\u2019t he handing the White House keys to Harris, whom he claims is qualified to replace him?<\/p>\n\n\n\n<p>Which Democrats are going to ask for an open convention to resolve this issue?<\/p>\n\n\n\n<p>For investors, the situation is becoming increasingly complex. The polling data suggests the race is far from over.<\/p>\n\n\n\n<p>There is a Trump trade, people betting on <a href=\"https:\/\/www.ironfx.com\/ms\/markets\/shares\/\" target=\"_blank\" rel=\"noreferrer noopener\">stocks<\/a> and certain sectors of the market likely to benefit from Trump\u2019s potential victory and a Republican sweep of both houses, particularly after Biden\u2019s disastrous debate performance and his subsequent attempts to try and recover.<\/p>\n\n\n\n<p>Investors last week started taking some profits on the Trump trade when it became clear that Biden was heading for the exit, particularly after his Covid diagnosis.<\/p>\n\n\n\n<p>The bet is that, despite all Biden\u2019s weaknesses, the polls showed he still wasn\u2019t being beaten. Any alternative Democratic candidate might be better and potentially beat Trump, who has his own negatives we all know about. There\u2019s also a chance the Dems could keep the House or maybe the Senate.<\/p>\n\n\n\n<p>If the Dems manage to keep one of the chambers of Congress, even if Harris loses to Trump, they would be able to allow Trump\u2019s tax cuts to expire, so that will be a key consideration.<\/p>\n\n\n\n<p>That would be bad for investments and the economy, given the Democratic Party\u2019s left-leaning stance on economic issues, regardless of their candidate.<\/p>\n\n\n\n<p>Depriving the nation of Trump\u2019s economic policies, such as lower corporate taxes and deregulation, is bad for stocks, according to traders. This is why there was a broad-based sell off last week even as Trump seemed to be securing his victory at the GOP convention.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"825\" height=\"344\" src=\"\/wp-content\/uploads\/2024\/07\/usa-vote-america-elections.gif\" alt=\"Toilet with four buttons - USA voting elections\" class=\"wp-image-88894\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The silver lining<\/strong><\/h2>\n\n\n\n<p>On the positive side, the American people will choose between the strong ticket of Trump and Vance, and the Democrats\u2019 candidates.<\/p>\n\n\n\n<p>According to the Wall Street Democratic Party grapevine, Harris will likely be at the top of the ticket, with a moderate running mate, potentially Pennsylvania Gov. Josh Shapiro.<\/p>\n\n\n\n<p>One reason Biden finally stepped down is because his fundraising dried up, but now, with new candidates, the American people will have a real election with well financed candidates who are ready to spend heavily to defeat Trump.<\/p>\n\n\n\n<p>\u201cDonors are ready to go heavy,\u201d said a top Wall Street executive, affiliated with the Democratic Party, just minutes after Biden made it official.<\/p>\n\n\n\n<p>The downside: Another top Wall Street Dem revealed that the plan isn\u2019t just to endorse Harris but for \u201can open convention within the Democratic Party.\u201d Sounds appealing given Harris\u2019 weaknesses, but this could lead to chaos.<\/p>\n\n\n\n<p>And again, Wall Street research predicted this more than a year ago, when the DC press corps was ignoring Biden\u2019s obvious and continuing mental and physical decline.<\/p>\n\n\n\n<p>In other words, this thing could get ugly.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"825\" height=\"344\" src=\"\/wp-content\/uploads\/2024\/07\/kamala-biden-usa-elections.jpg\" alt=\"Joe Biden and Kamala Harris standing together, representing the USA in the elections.\" class=\"wp-image-88895\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-harris-may-benefit-mega-caps-and-international-business\"><strong>Harris may benefit mega caps and international business<\/strong><\/h2>\n\n\n\n<p>CNBC\u2019s Jim Cramer on Monday told investors about the potential market impact of a Kamala Harris administration, suggesting her policies would be more favourable for mega caps and international companies.<\/p>\n\n\n\n<p>\u201cIf you\u2019re looking to invest in tech, you want a world where tech has a voice in Washington, not slashed vocal chords under Trump or on mute under Biden,\u201d he said.<\/p>\n\n\n\n<p>&nbsp;\u201cIf you own many stocks of international companies and you want to vote your portfolio, Harris is more likely to help than hurt. That\u2019s more than I can say about everyone else.\u201d<\/p>\n\n\n\n<p>President Joe Biden withdrew from the 2024 race over the weekend and backed his vice president for the Democratic nomination. Harris quickly received endorsements from high-profile politicians from across the country, including former House Speaker Nancy Pelosi and California Governor Gavin Newsom.<\/p>\n\n\n\n<p>According to Cramer, Biden saw that \u201cbig business is bad business,\u201d but Harris may take a \u201cmore nuanced approach.\u201d Cramer said he could see Harris establishing close communication with Big Tech leaders.<\/p>\n\n\n\n<p>He also said Harris seems to support globalization, which could benefit companies like Taiwan Semiconductor. In contrast, former President Donald Trump and his running mate, Sen. JD Vance of Ohio. Cramer favour smaller, domestic businesses, which could be less advantageous for companies with a lot of international operations.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"825\" height=\"344\" src=\"\/wp-content\/uploads\/2024\/07\/harris-kamala.jpg\" alt=\"A woman dressed in a black suit and pearls stands on a stairway, representing strength and leadership in U.S. voting.\" class=\"wp-image-88896\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-biden-vows-to-campaign-hard-for-harris\"><strong>Biden vows to campaign hard for Harris<\/strong><\/h2>\n\n\n\n<p>On Monday, President Biden said that he was \u201cnot going anywhere\u201d and would be \u201cfully, fully engaged,\u201d as he promised to campaign hard to elect Vice President Kamala Harris and to use his final six months in office to continue pushing for his priorities at home and abroad.<\/p>\n\n\n\n<p>In his first public comments since withdrawing from the 2024 race, Mr. Biden joined a meeting led by Ms. Harris at their former joint campaign headquarters at Wilmington, Del., now entirely hers. He thanked his \u201camazing team\u201d for their efforts on his behalf and urged them to now focus their energies on supporting Ms. Harris.<\/p>\n\n\n\n<p>The president, who has been out of the public eye since isolating with Covid at his vacation house in Rehoboth Beach, Del., sounded a little hoarse but strong. The White House physician reported earlier that the president was recovering well and that his symptoms were \u201calmost completely resolved.\u201d<\/p>\n\n\n\n<p>\u201cThe name has changed at the top of the ticket, but the mission hasn\u2019t changed at all,\u201d Mr. Biden told the campaign team. \u201cAnd by the way, I\u2019m not going anywhere. I\u2019m going to be out there on the campaign with her, with Kamala. I\u2019m going to be working like hell, both as a sitting president getting legislation passed as well as campaigning. You know, we still need to save this democracy, and Trump is still a danger to the community. He\u2019s a danger to the nation.\u201d<\/p>\n\n\n\n<p>Mr. Biden appeared determined to emphasise his message, repeating the phrase \u201cnot going anywhere\u201d three times during his four-minute address.<\/p>\n\n\n\n<p>He said that he plans to use his remaining time in the White House to fight for more childcare, to reduce prescription drugs charges, to stem climate change and to end the war in Gaza. He is also set to meet with Prime Minister Benjamin Netanyahu of Israel at the White House later this week and expressed hope for a potential cease-fire. \u201cI think we\u2019re on the verge of being able to do that.\u201d<\/p>\n\n\n\n<p>Mr. Biden did not go into details about his decision to withdraw from the race, but he paid tribute to his team for their sacrifices and accomplishments. \u201cI\u2019ve been honored and humbled \u2014 I mean this from the bottom of my heart, my word as a Biden \u2014 for all you\u2019ve done for me and my family.\u201d Now, he said, \u201cI\u2019m hoping you\u2019ll give every bit of your heart and soul that you gave to me to Kamala.\u201d<\/p>\n\n\n\n<p>Disclaimer: <em>This information is not considered investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced or hyperlinked in this communication.<\/em><\/p>","protected":false},"excerpt":{"rendered":"<p>For over a year, Wall Street has speculated that&#8230;<\/p>\n<div class=\"article-readMore\"> <a class=\"more-link\" href=\"https:\/\/www.ironfx-id.com\/ms\/how-a-kamala-harris-candidacy-could-impact-the-stock-market\/\">BACA SELANJUTNYA <span class=\"screen-reader-text\">How a Kamala Harris candidacy could impact the stock market<\/span><\/a><\/div>","protected":false},"author":15,"featured_media":88893,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-88888","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","blog-category-trending-articles","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How a Kamala Harris candidacy could impact the stock market<\/title>\n<meta name=\"description\" content=\"Wall Street anticipates market shifts with Kamala Harris&#039;s potential candidacy. 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