What to Take Away
- As the markets processed last night’s debate against Vice President Kamala Harris, assets associated with former President Donald Trump began to decline early on Wednesday.
- As investors considered the possibility that Harris would continue President Joe Biden’s climate policies, solar and other green energy stocks rose.
- The parent company of Truth Social saw its stock fall. Additionally, Bitcoin and a few crypto stocks lost ground.
- Following the presidential debate last night, investors voted on a variety of politically connected assets, lifting some alternative energy shares and dragging cryptocurrencies.
After the debate, most prediction markets said that Vice President Kamala Harris would win, with Polymarket still saying that former President Donald Trump would win and PredictIt saying that Harris would win.
The two of them argued for more than ninety minutes about the economy, immigration, abortion, the cost of living, and attendance at campaign rallies.
DJT, Crypto Grieves Post-Discussion.
Following that, the shares of Truth Social’s parent company Trump Media & Technology Group (DJT), which frequently serves as a proxy for opinions regarding Trump’s chances of reelection, fell by approximately 12%, reaching levels that were some of their lowest levels ever. The stock’s notoriously volatile float is small.
Another asset class that is thought to benefit from a Trump presidency was cryptocurrency, which also fell. The price of Bitcoin (BTCUSD) dropped from approximately $57,650 at the beginning of the debate to approximately $56,880 at the conclusion. Its price fell overnight, reaching as low as $56,130 early on Wednesday.
Rising Solar Stocks
Clean energy stocks, which were among the S&P 500’s best performers on Wednesday, benefited from Harris’s performance.
It is widely anticipated that Harris will carry on President Biden’s green energy agenda if elected president. Albemarle (ALB), a major lithium mining company, gained 11% on Wednesday, while First Solar (FSLR), a manufacturer of solar panels, and AES Corp. (AES), a provider of green energy, gained 12% and 7%, respectively. Despite an inflation report that tempered the market’s expectations for interest rate cuts, the Invesco Solar ETF (TAN) traded 5% higher.
Solar stocks are thought to be particularly affected by interest rates because residential customers rely on low borrowing costs and a strong housing market for their purchases.
