NEW YORK, Sept 11 (Askume) – A heated exchange between Republican Donald Trump and Democratic Vice President Kamala Harris sent investors seeking to switch sides on Wednesday, with betting markets tilting toward Harris following the incident.
Shares of Trump Media & Technology Group, which owns Truth Social, fell about 14% in premarket trading, while Solar shares rose.
The dollar fell against Asian currencies after the debate but recovered after U.S. consumer price data. U.S. cryptocurrency stocks declined in premarket trading , while bitcoin fell about 1.5%.
In a heated debate Tuesday night , Trump and Harris clashed over everything from the economy to immigration and Trump’s legal issues, as the two tried to turn the tide in a hotly contested race.
His exchange provided investors with few new details on issues that could affect the market, including tariffs, taxes and regulations. But online prediction markets suggest Harris’s chances of winning in November are high: PredictIt’s 2024 presidential election marketplace raised Harris’s odds to 55 cents from 53 cents before the debate, while Trump’s odds fell to 47 cents from 52 cents.
“The consensus is that Harris won the debate,” said Alvin Tan, head of Asia FX strategy at RBC Capital Markets in Singapore. “It’s obviously not a huge win for Harris, but Trump’s chances of winning have diminished a little bit.”
The dollar recently fell 0.2% against a basket of currencies including the euro and the yen. Stock index futures fell about 0.3% as investors awaited consumer price data.
Shares of publicly traded U.S. solar companies, which are seen as benefiting from Harris’ win, rose 2.2% to 7.2% in premarket trading.
Meanwhile, investors hammered shares of Trump Media Technology Group (DJT.O) , which has been popular among retail traders and is sensitive to the former president’s chances of winning the 2024 election.
The presidential campaign remains a focus for investors, but political concerns have recently been combined with more immediate market catalysts , including worries about potential weakness in the U.S. economy and uncertainty about whether the Federal Reserve will need to cut interest rates. After a second consecutive disappointing jobs report, the S&P 500 posted its worst weekly percentage loss since March 2023 last week, though the index is still up nearly 15% this year.
Still, some investors believe even a small shift in a candidate’s perception could play a key role in a race that could involve hundreds of thousands of votes in some states. According to an average of polls compiled by The New York Times, the two candidates are roughly tied in the seven battleground states that will decide the election.
Charu Chanana, head of FX strategy and global market strategist at Saxo Bank, said: “The US presidential debate has achieved its goal, with one candidate taking a decisive lead in a highly contested race as sentiments adjust to changing political dynamics.”
Trump has described himself as a pro-cryptocurrency candidate.
Taxes
Trump has promised to reduce corporate taxes and take a tough stance on trade and tariffs. He has also said a strong dollar would hurt the United States, although some analysts believe his policies could lead to inflation and eventually a collapse of the currency.
Harris last month outlined a plan to raise the corporate tax rate from 21% to 28%, a proposal that some on Wall Street believe could hurt corporate profits .
On Tuesday night, Harris attacked Trump’s intention to impose high tariffs on foreign goods — a proposal she said was equivalent to a sales tax on the middle class — while also touting her plan to provide tax breaks for families and small businesses.
Trump defended his tariff proposals, saying they would not raise prices for Americans.
The yuan, which has come under pressure during the Trump presidency due to the US-China trade war, rose against the dollar in early trade on Wednesday.
Trump criticized Harris for maintaining inflation during her tenure in the Biden administration. He said, “Inflation is a disaster for the people, for the middle class, for every class.”
However, economic policy is likely to remain uncertain for some time.
“There hasn’t been a lot of substantive discussion about policy,” said Varghese of the Carson Group and the House of Representatives.
