Key Insights for Stock Investors For The Upcoming U.S Presidency Election!

Get ready and secure your stocks before the market opens and closes on June 28th!

The first debate between Democratic President Joe Biden and Republican former President Donald Trump is set for June 27th. With only two debates planned, Thursday's confrontation is incredibly important as both candidates escalate their personal attacks. National polls indicate a close contest between them, and millions of potential voters are expected to tune in.

The high-stakes rematch between the two well-defined political foes is anticipated to draw one of the largest television and internet audiences of the election cycle. The earlier-than-usual confrontation will provide both candidates with an opportunity to make their case for a second term. However, there is also a risk that Americans, already dissatisfied with their options, will become even more dismayed after the debate. Recent polls indicate an extremely tight race between the 81-year-old incumbent and the 78-year-old former US president, with both candidates remaining broadly unpopular.

Despite the intense race, the stock market remains stable despite uncertain election outcomes. Usually, significant policy changes occur when one party controls the White House and Congress, but this seems unlikely based on current polls. Investors are closely monitoring the potential impact of the election on businesses, the economy, and capital markets. While the leading candidates are well-known, uncertainties about how election outcomes could shape policy changes and their impact on the markets persist.

Market volatility may increase as investors react to potential election outcomes, with sector performance varying based on the expected winner. The immediate market reaction post-election could be either a rally or a decline, depending on whether the results meet expectations.

If Joe Biden wins a second term, we can anticipate a continued focus on clean energy, which could benefit sectors like renewable energy, electric vehicles, and energy efficiency technologies. Healthcare stocks may see stability or growth due to ongoing efforts to expand access and reduce costs. Furthermore, continued or increased funding for infrastructure projects could benefit the construction, engineering, and materials sectors. However, higher corporate taxes and increased regulation for big tech and finance are expected, potentially impacting the profitability of these sectors, thus necessitating portfolio diversification for investors.

In the event of a Donald Trump win, higher tariffs could negatively impact companies with international supply chains, particularly in consumer discretionary, industrial, and tech sectors. Conversely, higher tariffs may benefit domestic steel, lumber, aluminum, and solar cell producers. A reduced emphasis on green energy initiatives could benefit traditional energy and financial sectors due to a more relaxed regulatory environment. Additionally, less stringent antitrust enforcement might increase mergers and acquisitions activity. Notably, Trump also voiced support for cryptocurrency and promised to advocate for the industry if re-elected, which may have implications for the crypto market.

Check out Moomoo’s comprehensive list for more information on which stocks could benefit from a Biden or Trump win.