Wall Street betting on Kamala Harris win? CNBC's Jim Cramer dissects the volatility
Here's why CNBC's Jim Cramer feels Wall Street investors are anticipating a Kamala Harris win
On election day eve Wall Street saw a volatile movement, closing slightly lower. It is a crucial week in which Americans will elect a new president and the Federal Reserve will announce its policy statement. But does the choppy trade indicate investor sentiment ahead of the historic ballot?
CNBC’s Jim Cramer feels the session’s moves reflect investors who feel Vice President Kamala Harris could win the presidency, even as the race remains deadlocked.
“I’m not sure the market’s right about what a Harris presidency would mean for business, but at least now we have a blueprint for what Wall Street thinks it’ll mean,” he said.
How stock market movement indicates Kamala is winning
Cramer suggests people on the Wall Street foresee a Kamala Harris win after Iowa poll pulled up a big surprise for her, showing she may win a deep red state. Donald Trump won the state during his two previous elections which has six electoral votes. The poll showed Harris leading Trump 47% to 44%, and Cramer said it has led investors to question whether other red states could turn blue.
Cramer's analysis suggested, several sectors that pulled ahead on Monday, including home builders DR Horton, Lennar and Toll Brothers, may be triggered by Harris' proposed tax breaks and aid for first-time home buyers.
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He further added, companies like alcohol seller Constellation Brands or cosmetics company E.l.f. Beauty— may have surged over Harris' more moderate trade stance compared to her opponent. Trump on the other hand has vowed to implement dramatic trade duties across industries, Cramer said.
Some of the much touted ‘Trump trades’ unwound, sparking a drop in the U.S. dollar , Treasury yields and bitcoin . Trump Media & Technology Group closed up 12.37%, bouncing back from early losses of nearly 6%.
CNBC's stock market expect feels Wall Street is suspecting that Harris will continue the Biden administration’s legacy of strong antitrust law enforcement, perhaps keeping on officials like Federal Trade Commission Chair Lina Khan, who has been tough on big business.
“I like the idea that you can now get a jump on what traders think,” he said. “Then again, I don’t regard traders as the best prognosticators of anything other than what other, slower traders might do within the next day or two — just not worth changing our portfolio over. I say stay the course.”