U.S. financiers are showing a particular interest in technology-related shares.
Following the TV debate between Trump and Harris, US stock markets show a shift: Trump's media empire shares are diving, while solar stocks are on the rise. The congressional debate has impacted investments, with Republican chances seeming less likely. As a result, stocks associated with Trump are dropping. On the contrary, winners of the day are the solar sector and tech stocks that are interest-rate sensitive.
US stock exchanges concluded Wednesday on a positive note, boosted by high-tech stocks. The Dow Jones Index ended 0.3% higher at 40,861 points, after a rocky start and tumultuous trading. The tech-heavy Nasdaq showed a 2.2% advance, reaching 17,395 points. The broad-based S&P 500 rose by 1.1%, settling at 5,554 points.
Inflation data initially weighed upon trading but eventually supported the market. While inflation eased as anticipated in August, the data revealed a persistent core inflation rate, hinting at a cautious monetary policy stance. Market analysts noted that, with these figures, the US Federal Reserve might opt for a 25 basis point cut rather than the hoped-for 50 basis point cut.
Nvidia's stocks showed significant gains, surging over 8%. Reports indicated that the US government is contemplating the approval for the export of advanced chips to Saudi Arabia to AI chipmaker, Nvidia. Additionally, IBM stocks climbed 2.2%, hitting an all-time high.
Solar stocks and lithium producers surge
The debate between presidential candidates Donald Trump and Kamala Harris served as a catalyst for discussions. Harris' assertive stance against Trump saw betting odds for the Democrat improve. As a result, shares of Trump Media & Technology Group, reportedly the parent company of Truth Social, sank by 10.5%.
Simultaneously, solar stocks auguring well for a Harris presidency found favor with buyers: First Solar, Sunrun, and SolarEdge Technologies recorded gains of up to 15.1%.
Lithium producers like Albemarle and Piedmont also demonstrated increased demand, with shares rising by 13.6% and 9.9% respectively. An announcement from Chinese battery maker CATL suggested planned suspensions of production at two plants.
Video game retailer GameStop experienced a decline, with shares dropping nearly 12%. Second-quarter earnings for GameStop fell drastically, from $1.16 billion to $798.3 million, attributable to consumers switching to online shopping over traditional stores. Analysts had expected a revenue of $895.7 million, further impacting GameStop's share price.
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In response to the improved betting odds for Democrat Kamala Harris, shares of her opponents' businesses, such as Trump Media & Technology Group, associated with 'Trading in shares' of Truth Social, decreased. Conversely, solar stocks like First Solar, Sunrun, and SolarEdge Technologies that are perceived to benefit from a Harris presidency saw an increase in 'Trading in shares', up to 15.1%.
