Biden Exit, and "Harris concept stocks" are in Demand Among Funds
Biden withdraws from the election, "Harris concept stocks" are sought after by funds
US President Biden withdrew from the presidential election and supported the nomination of Vice President Kamala Harris to compete.
As there are still variables in the confirmation of the final candidate, the US stock market trend is fluctuating.
The $DJIA(.DJI)$ once rose 174 points, but recently fell 33 points. The $S&P 500(.SPX)$ and $NASDAQ(.IXIC)$ also fell sharply to 30 points and 182 points.
"Harris concept stocks" are sought after by funds.
Renewable energy concept strengthens
With Biden's withdrawal from the election, the previous expectation of a big defeat for the Democratic Party has been reversed, and the current situation can at least compete in Congress.
Once Harris is elected, it is expected that he will inherit the policy guidelines of the Biden administration and the People's Party.
Many renewable energy sectors have rebounded. $First Solar(FSLR)$ has soared 4.5%, $NextEra(NEE)$ has risen 3%, and $Energy Services of America Corp.(ESOA)$ and $Quanta(PWR)$ have also risen 3%.
As for the market's betting on Trump's big victory, the idea has been restrained, and the "Trump Trade" has become silent. $Trump Media & Technology(DJT)$ encountered a lot of liquidation in the early stage, and the latest fell 4%.
Traditional energy stocks were sold off, $Occidental(OXY)$ fell more than 2%
$Occidental(OXY)$ , a traditional energy stock, fell 2.4%, $ConocoPhillips(COP)$ and $Peabody Energy Corp(BTU)$ fell 1.3%, $Exxon Mobil(XOM)$ and $Chevron(CVX)$ also fell 0.8%.
The financial sector was not greatly affected. In addition to the 1.4% drop in $Bank of America(BAC)$ , which Berkshire Hathaway reduced its holdings, a number of Wall Street investment banks took a breather, including $JPMorgan Chase(JPM)$ up 0.6%, $Morgan Stanley(MS)$ up 0.5%, and $Goldman Sachs(GS)$ up 0.3%.
Elon Musk's support for Trump is not affected
However, $Tesla Motors(TSLA)$ is "playing both sides". Tesla CEO Elon Musk has publicly supported Trump many times. Although it is a concept stock of "Trump deal", it is also engaged in the electric vehicle industry supported by the Democratic Party. The stock still rose 5% in the early trading to $251.44.
Although pharmaceutical stocks are also facing price-cutting measures by the Democratic Party, they are relatively stable. $Merck(MRK)$ has no rise or fall, while $Eli Lilly(LLY)$ has risen 1.7%.
Tom Essaye, founder of research firm The Sevens Report, believes that even if the political outlook is unclear, it will not substantially change the direction of the market, and the ultimate direction of the $S&P 500(.SPX)$ will still be determined by economic growth.
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