Wall Street Reacts To Debate
We've got some interesting developments in the stock market today, influenced by the recent debate between President Joe Biden and former President Donald Trump. Let's break down what's happening and how it's impacting your investments.
First off, the debate, which took place in Atlanta, was a heated exchange where the candidates sparred over inflation, government spending, and a range of other issues. According to a Democratic strategist who spoke to Fox, Trump came out on top with a stronger performance, while Biden's showing was seen as disappointing. Despite this, the strategist noted that the election race remains tight.
Now, let's get to the numbers. Initially, stocks rose as investors reacted to the debate, but the gains were short-lived. By the close of the market, stocks had given up their gains and ended slightly lower. The S&P 500 and Nasdaq, which were at record highs before the debate, also saw some downturns.
His performance was awful. But so was Trump’s. Biden was feeble. Trump couldn’t directly answer a single question and lied with every response.
The question is what features voters believe make a better POTUS : Feeble, Capable and Ethical vs Vigorous, Unethical and Incapable… https://t.co/AEy9r7vpY6
— Mark Cuban (@mcuban) June 28, 2024
One significant factor influencing the market was the latest inflation report. The Personal Consumption Expenditures (PCE) index, a key measure of inflation, rose by 2.6%, which was in line with expectations. This steady inflation data suggests that the market was already pricing in these numbers, contributing to the muted response in stock prices.
Another big story comes from Nike. The global athletic company shocked investors by disclosing that it expects sales to drop in 2025. This surprise announcement led to a significant sell-off, making it one of the worst days for Nike stock in nearly two decades.
In the realm of big personalities, billionaire Mark Cuban expressed his dissatisfaction with both Biden and Trump during the debate, skewering them in a post on X. Meanwhile, betting markets showed a shift in favor of Trump during and after the debate. Predict It, a project of Victoria University of Wellington, indicated that more people were placing their bets on Trump.
.@realDonaldTrump is going to win in a landslide. The country should rally around Trump and help him succeed.
Trump didn’t expect to win the first time he was elected. As a result, he was totally unprepared. The lack of preparation, the Russia investigation and the ensuing…
— Bill Ackman (@BillAckman) June 28, 2024
Adding to the mix, billionaire hedge fund manager Bill Ackman, who has been vocal about antisemitism following the October 7 attacks by Hamas on Israel, predicted that Trump would win "in a landslide," according to a tweet after the debate.
So, what does all this mean for investors? The market is showing its typical reaction to political events, with initial volatility followed by a return to focus on fundamentals like earnings and economic data. As always, it's crucial to stay informed and keep a close eye on how these political developments might influence market trends.