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Traders were quick to change course Wednesday following a closely watched debate between Republican nominee Donald Trump and Democratic Vice President Kamala Harris, with bets shifting in Harris’ favor after the event..
Shares of Trump Media and Technology Group, the company that owns Truth Social, fell about 14 percent, while bitcoin and cryptocurrency stocks fell. Solar energy companies, which analysts see as benefiting from a Harris win, rose, while health care stocks fell..
In a closely contested debate, Trump and Harris clashed over everything from the economy to immigration and Trump’s legal woes, each seeking a moment that could change the course of the campaign in a close race..
The debate brought traders some new details on issues that could affect markets, including tariffs, taxes and legislation. But online prediction markets showed stronger bets on a Harris win in November, with Harris’s odds on the 2024 presidential election market improving to 55 cents from 53 cents before the debate, while Trump’s odds fell to 47 cents from 52 cents..
While the presidential race is on traders’ minds, political concerns have recently combined with more immediate market drivers, including concerns about a potential weakening U.S. economy and uncertainty over how much the Federal Reserve will need to cut interest rates..
Still, some investors believe the slight shift in perceptions of the candidates could be significant in a race that could be decided by tens of thousands of votes in a handful of states. Polling averages compiled by The New York Times show the candidates virtually tied in the seven swing states likely to decide the election..
Trump has promised to cut corporate taxes and take a tougher stance on trade and tariffs. He has also said a strong dollar is hurting the United States, though some analysts believe his policies could spur inflation and ultimately support the currency..
