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Harris Nomination and Biden Endorsements: Market Reactions
As the U.S. presidential election heats up, significant developments have been unfolding. President Joe Biden has endorsed Kamala Harris, leading to a surge in support and fundraising efforts. Meanwhile, an assassination attempt on former President Donald Trump has sparked renewed interest in his potential candidacy.
Market Impact
The S&P 500 experienced its most significant increase since early June, bouncing back from its steepest decline. This rebound is attributed to enhanced liquidity in the market. Strategas’ Dan Clifton noted that despite political uncertainty, the S&P 500 has increased by 6% over the past seven weeks, providing a buffer against political events.
Key Highlights
- Technology Recovery: The S&P 500 achieved its most significant increase since June 5, bouncing back from its steepest decline.
- Confidence in Boeing: Boeing secured a contract for 40 wide-body jets from Korean Air, a notable success amidst production delays and safety issues.
- NBA Broadcasting Rights: Warner Bros. Discovery matched a $1.8 billion annual agreement between the NBA and Amazon Prime Video for a selection of games.
Market Sentiment
Wall Street reacted calmly to Biden’s decision to halt his reelection campaign, with investors advising against making impulsive portfolio adjustments. Experienced investors caution against altering portfolios based on election predictions, given the significant events that have already occurred and the likelihood of further changes ahead.
Earnings Reports and Central Bank Policies
Earnings reports and central bank policies remain crucial for Wall Street. The market is pricing in a greater than 92% likelihood that the Federal Reserve will lower interest rates during its September meeting. The core PCE price index, the Fed’s preferred inflation measure, is set to be released on Friday, providing insights into the central bank’s future monetary policy direction.
Automakers’ Earnings
Automakers are gearing up to announce their earnings, with General Motors expected to excel among traditional automakers. Tesla’s earnings are also due, with investors eagerly awaiting updates on its robotaxi initiatives.
Original Article: https://www.cnbc.com/2024/07/23/live-updates-harris-nomination-biden-endorsements-trump.html
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