Election Day Stock Watch: Trump, Harris Victories Could Shake Up Market Sectors

Election Day is here, and the stock market is holding its breath. A victory for either Republican Donald Trump or Democrat Kamala Harris could significantly impact various market sectors, making this election a pivotal moment for investors. Here’s a breakdown of the key sectors and companies to watch as the nation awaits the final vote count:

Trump Media & Technology Group Corp. (DJT)

Shares of DJT are experiencing heavy trading volume on Election Day, fueled by speculation surrounding a potential Trump victory. The stock has surged a staggering 270% from its September lows, driven by investors betting on a Trump comeback. Matthew Tuttle, CEO of Tuttle Capital Management, describes the stock as a “binary bet” on the election outcome. While a Trump win could propel DJT further, analysts warn that a loss could potentially make the shares “worthless.”

Energy and Renewable Sectors

The energy sector is another area of keen interest. Investors are closely watching

Exxon Mobil Corp. (XOM)

, hoping for a Trump administration that favors traditional energy policies. It’s important to note that the US achieved record oil production under President Biden, surpassing the levels reached during Trump’s presidency. On the other hand,

First Solar, Inc. (FSLR)

and other solar energy companies are considered potential beneficiaries of a Harris victory, given her support for renewable energy policies and climate initiatives.

Defense Stocks

Wall Street analysts are generally bullish on defense stocks in the event of a Trump victory.

RTX (RTX)

, formerly Raytheon Technologies, is one of the “Big Five” defense contractors anticipated to benefit from increased defense spending. Other defense contractors to watch include

General Dynamics Corp. (GD)

and

Palantir Technologies, Inc. (PLTR).

Housing Market

Homebuilders are also on investors’ radar.

Lennar Corp. (LEN)

could see gains if Harris wins and implements her plans to promote homeownership. Her proposals include providing up to $25,000 in down payment assistance to first-time homebuyers who have consistently paid rent for two years. Other home builders to watch include

D.R. Horton, Inc. (DHI)

and

KB Home (KBH).

As the nation awaits the election results, investors will be closely monitoring these stocks to see how the market reacts to the outcome. The potential shifts in energy policy, defense spending, and housing initiatives could lead to significant market volatility in the coming weeks.