Election Frenzy Grips Markets
As the presidential election draws to a close, investors are on high alert, driving stocks upward in anticipation of the outcome. The Dow Jones Industrial Average surged 359 points, or 0.8%, in mid-morning trading, with the S&P 500 and Nasdaq following suit, rising 0.8% and 1%, respectively.
Dollar Weakens, Bonds Strengthen
Meanwhile, the dollar index plummeted to its lowest point in over a month on Monday, hovering just above that mark on Tuesday. Ten-year treasury bonds, on the other hand, saw a slight uptick, indicating a shift in investor sentiment.
Trump Trade Revival
Earlier this year, markets began to exhibit the “Trump Trade” phenomenon, where investors responded to the possibility of a second Trump administration. However, recent polls suggest a tighter race, with Vice President Kamala Harris gaining ground on former President Donald Trump.
Polls Paint a Mixed Picture
Several polls released over the weekend showed Harris making strides in battleground states like North Carolina and Georgia. A new poll from Iowa pollster Ann Selzer even put Harris ahead of Trump by three points in Iowa, a traditionally Trump-friendly state. While 538’s polling average gives Harris a narrow edge, other averages, such as Decision Desk HQ and The Hill’s, still favor Trump.
Trump-Linked Stocks Soar
Trump Media and Technology Group (DJT) stock skyrocketed nearly 15% in morning trading, building on Monday’s 12% gain. Phunware (PHUN), a mobile advertising company tied to Trump, also saw a 7% increase, despite its CFO’s announcement to step down.
Tech Stocks Shine
Palantir Technologies (PLTR) shares rocketed over 20% after posting impressive earnings, while artificial intelligence networking chip firm Astera Labs (ALAB) delivered blowout results. Super Micro Computer (SMCI), facing the threat of Nasdaq delisting, is set to report earnings later today.
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