Money Map Press Chief Investment Strategist Shah Gilani shares his thoughts on Trump and Harris' debate performance and its potential impact on the US economy.
U.S. stocks were wildly volatile on Wednesday as investors wavered between the Federal Reserve's looming interest rate cuts and the race for the White House following a key debate between Vice President Kamala Harris and former President Trump.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| Me: DJI | Dow Jones Average | 40861.71 | +124.75 |
+0.31% |
| SP500 | S&P 500 | 5554.13 | +58.61 |
+1.07% |
| I:Comp | Nasdaq Composite Index | 17395.531033 | +369.65 |
+2.17% |
The Dow Jones Industrial Average had recovered most of its more than 600-point decline by mid-afternoon, as had the S&P 500. Meanwhile, the Nasdaq Composite Index turned positive, up more than 1%.
Investors react after Trump-Harris debate
Dow Jones Industrial Average
Technology stocks were the big driver and the only S&P sector to rise, helped by semiconductor stocks like Nvidia, Intel and AMD, as well as Apple. Consumer Staples, Financials and Energy continued to slump.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| XLK | Technology Select Sector SPDR ETF | 217.38 | +7.09 |
+3.37% |
| NVDA | NVIDIA Inc. | 116.78 | +8.68 |
+8.03% |
| International Trade Commission | Intel Corporation | 19.66 | +0.68 |
+3.56% |
| Am | Advanced Micro Devices, Inc. | 149.84 | +7.00 |
+4.90% |
| AAPL | Apple Inc. | 222.56 | +2.46 |
+1.12% |
Inflation Slows Ahead of August Fed Meeting
The Consumer Price Index rose 2.5% in August as prices continued to ease, the lowest since February 2021. Still, food prices remain high compared to a year ago, with eggs up 28%, ground beef up 4.9%, whole milk up 3% and dining out up 4%, according to the U.S. Bureau of Labor Statistics.
Traders have lowered their expectations for a 50 basis point cut by the Fed next week to just 13%, but the probability of a 25 basis point cut is now 87%. CME's FedWatch tool, This is a gauge of the probability of interest rate changes. Policy makers are expected to cut interest rates on September 18 for the first time since March 2020.
Shares of big money center banks that stand to benefit from higher interest rates, including JPMorgan, Bank of America and Wells Fargo, were mixed.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| XLF | Financial Select Sector SPDR ETF | 44.30 | -0.17 |
-0.38% |
| JPM | JPMorgan Chase | 207.16 | +1.60 |
+0.78% |
| Blood alcohol content | Bank of America | 39.00 | -0.30 |
-0.76% |
| World Economic Forum | Wells Fargo | 53.71 | -0.24 |
-0.44% |
The debate between Trump and Harris, which aired on the Disney-owned ABC network, was contentious at times but gave the vice president a boost.
“If you look at the projected odds rankings in these betting markets, Kamala Harris is more likely to win the November election, while Trump is less likely,” Adam Turnquist, chief technical strategist at LPL Financial, said during an appearance on “Mornings with Maria” on Wednesday.
During a debate at the National Constitution Center in Philadelphia on Tuesday, former President Trump and Vice President Kamala Harris were shown on a screen in the spin room. (Hannah Beyer/Bloomberg via Getty Images)
Energy stocks that could benefit from a Trump victory, including Chevron Corp., Exxon Mobil Corp. and Marathon Oil Co., fell.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| XL | Energy Select Sector SPDR ETF | 84.33 | -0.78 |
-0.92% |
| CVX | Chevron Corporation | 137.84 | -0.38 |
-0.27% |
| ZOM | Exxon Mobil Corporation | 109.71 | -1.11 |
-1.00% |
| M.R.O. | Marathon Oil Co., Ltd. | 25.89 | -0.33 |
-1.26% |
Shares in Trump Media and Technology Group, in which the former president is the largest shareholder, have hit an all-time low.
Trump Media & Technology Group
The company's market capitalization is currently $3.3 billion, and Trump's stake is worth $1.9 billion, and after the assassination attempt in July, his holdings were worth more than $5 billion.
