The United States presidential election will take place on November 5. But politics affect the stock market and raises a concern about who will win the US election, whether former President Donald Trump or Vice President Kamala Harris.
According to reports by experts, the market will rise whether Harris or Trump wins the election. The S&P 500 has increased more than 20% this year, the Nasdaq has jumped 23% this year, and the Dow Jones Industrial Average has increased 14%.
If the nation elects Trump, he will introduce low corporate tax rates and an anticipated deregulatory agenda that boosts corporate profit and stock market prices.
Moreover, Trump’s strategy supports the oil/gas, and artificial intelligence sectors in which renewable energy could suffer financial incentives.
“The Inflation Reduction Act was a big deal for solar and electric vehicle stocks,” Callie Cox, chief market strategist at Ritholtz Wealth Management, told ABC News. “Who knows what will happen if that policy is walked back?”
On the other hand, Harris plans to raise corporate taxes to 28% from 21%. Such imposition of corporate taxes and robust regulatory enforcement may hinder potential profits.
Additionally, the Harris administration benefits the renewable technology and policies. She aims to lower price increments on household things from groceries to prescription drugs. The campaign includes a federal ban on price-gouging and a focus on market concentration that would impact the higher prices.
Harris’s policies could lower the interest rate and earnings. It might cause the downward pressure on stock market prices.
“I don’t think Kamala Harris could enact changes that have long-term effects on the stock market,” Cox said. “If you’re a long-term investor, politics do not matter for your portfolio.”
Thanks for choosing to leave a comment. Please keep in mind that all comments are moderated according to our comment Policy.