The Trump-Harris Election Is Creating Anxiety on Wall Street

Published On Oct 9, 2024, 1:55 PM

The article discusses the uncertainty on Wall Street as the 2024 presidential election approaches, particularly in light of potential candidates Vice President Kamala Harris and former President Donald Trump. It highlights how this uncertainty affects financial decision-making. Financial deals, like the merger between Capital One and Discover, are being rushed to completion before the election, as banks fear potential regulatory changes depending on who wins. Investors are anxious as neither candidate is perceived to be particularly friendly towards the financial sector, leading to a slowdown in new acquisitions and public stock offerings.

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Stock Forecasts

COFView COF chart on TradingView

Positive

Given the political uncertainty, financial stocks may experience volatility. However, if the merger between Capital One (COF) and Discover (DFS) proceeds smoothly, it could create a temporary positive sentiment in banking stocks.

XLFView XLF chart on TradingView

Negative

The overall anxiety around the elections and potential backlash towards Wall Street could lead to declines in financial sector stocks, particularly if Trump’s proposals gain traction, which may limit profitability for banks.

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