Key Takeaways
- Financial assets associated with former President Donald Trump retreated early Wednesday as markets digested last night’s debate against Vice President Kamala Harris.
- Solar and other green energy stocks advanced as investors factored in the likelihood of Harris continuing President Joe Biden’s climate policies.
- Truth Social’s parent company saw its stock fall. Bitcoin and some crypto stocks also lost ground.
Investors cast votes on a range of politically connected assets following last night’s presidential debate, giving a lift to some alternative-energy shares and dragging on cryptocurrencies.
Prediction markets generally indicated a higher expectation of a victory by Vice President Kamala Harris victory after the debate, with Polymarket still predicting a win for former President Donald Trump and PredictIt increasing its likelihood of a Harris one.
Over 90 minutes, the pair sparred on the economy, immigration, abortion, the cost of living, and campaign rally turnouts.
DJT, Crypto Languishes Post-Debate
Subsequently, shares of Truth Social parent company Trump Media & Technology Group (DJT), which often acts as a proxy for views of Trump’s reelection chances, tumbled some 12%, trading at some of its lowest levels ever. The stock, which has a tiny float, is notoriously volatile.
Cryptocurrencies, another asset class seen as likely to benefit from a Trump presidency, also slumped. The price of Bitcoin (BTCUSD) declined from about $57,650 at the start of the debate to about $56,880 when it ended. Its price continued to slide overnight, and it traded as low as $56,130 early Wednesday.
Solar Stocks Soar
Harris’s performance gave a boost to clean energy stocks, which were among the S&P 500’s top performers Wednesday.
Harris, if elected President, is widely expected to continue President Biden’s green energy agenda. Lithium mining giant Albemarle (ALB) jumped 11% on Wednesday, while solar panel maker First Solar (FSLR) and green energy utility AES Corp. (AES) advanced 12% and 7%, respectively. The Invesco Solar ETF (TAN) traded 5% higher despite an inflation report that tempered the market’s expectations for interest rate cuts.
Solar stocks are believed to be particularly sensitive to interest rates because demand from residential customers hinges on low borrowing costs and a healthy housing market.