Stocks swing after inflation data, Harris-Trump debate

Published On Sep 11, 2024, 11:20 AM

Stocks experienced volatility due to the latest inflation data and the recently held debate between Vice President Kamala Harris and former President Donald Trump. The consumer price index showed a cooling inflation rate of 2.5% for August, the lowest since 2021. This news reduced expectations of a significant interest rate cut by the Federal Reserve, currently most likely a 25 basis point cut. After the debate, Harris’s odds for the upcoming presidential election improved while Trump's declined, affecting investor sentiment. Tech stocks led the market gains, while energy stocks underperformed.

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Stock Forecasts

XLKView XLK chart on TradingView

Positive

With inflation easing and market reactions to the debate, tech stocks are likely to see continued investor interest, particularly if rates are cut favorably. Tech sector ETFs and stocks might perform well.

XLFView XLF chart on TradingView

Negative

As interest rates are expected to decrease, financial stocks may not perform well due to lower profit margins. This could negatively impact large financial institutions.

XLEView XLE chart on TradingView

Negative

Energy sectors may remain under pressure following the debates, especially with the changing political landscape showing a decline in Trump's favorable odds. This uncertainty could weigh on big oil stocks.

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