How will US markets react to the political chaos?

Current US President Joseph Biden eventually succumbed to pressure from all sides, when the octogenarian president declined to accept the Democratic nomination for the 2024 US presidential election.

Will Biden’s departure impact the market?

For many, the final push from the likes of Obama and Nancy Pelosi was the final nail in the coffin, as the president, who backed Republican candidate Donald Trump, finally made way for a new face.

The impact this decision will have on the stock market is something that remains to be seen. The sudden volatility it will bring to the system is a potential development that observers are expecting.

The political landscape and the policies the new administration implements will undoubtedly have an impact on corporate stock prices and, by extension, on Wall Street activity.

The U.S. markets closed trading for the day on Friday, July 19. All major U.S. indices closed in negative territory. One of the oldest indices, the Dow Jones Industrial Average, closed at 40,287.53, down 0.93 percent or 377.49 points.

The S&P 500 index fell 0.71 percent, or 39.59 points, to close at 5,505.00. The tech-heavy Nasdaq composite also closed in the red, closing at 17,726.94, down 0.81 percent, or 144.28 points.

Additionally, the Russell 2000 Index also fell 0.63 percent or 13.94 points to close at 2,184.35.

Are Tesla Stocks Rising?

It is interesting to note that Dow Jones futures rose after the announcement. Meanwhile, S&P 500 futures and Nasdaq futures also rose slightly.

Tesla stock is expected to do well as company CEO Elon Musk has made a significant contribution to the Trump campaign and has also expressed his “full support” and announced that he would be moving the company’s headquarters from California to the Republican state of Texas.

The company’s shares also closed in the red on July 19, falling 4.02 percent or $10.03 before closing at $239.20 per share.

Published: Monday, July 22, 2024, 12:57 PM IST