Skip to content

Joe Biden win could lead these stocks higher, tech is feeling pressure

Joe Biden win could lead these stocks higher, tech is felling pressure

Joe Biden is leading in elections polls but the results could move anyway. Anyhow, the broader market turned green on the election day after last week slump but tech stocks are still feeling the pressure as Democrats are likely to make changes in regulatory policies.

The tech-heavy NASDAQ index fell from 11,900 points to below the 11,000 mark in the past three weeks after polls strongly favored Biden.   

A group of stocks that are likely to benefit from Joe Biden’s policies has beaten the stocks that could benefit from Donald Trump’s win, according to Morgan Stanley. The US bank has created two stock baskets to gauge the impact of elections on stock performance.  

Reuters Graphic
Morgan Stanley chart.

A “Biden basket” of stocks soared almost 4.5% in the last two months while the “Trump basket’ of stocks fell 16%.

The potential winners from Joe Biden win

The political strategist and venture capitalist Bradley Tusk stated that Joe Biden win will be appreciated by the Silicon Valley as the Donald Trump administration has created a lot of uncertainty due to trade war with China and European countries.

Green energy stocks are likely to perform well if Biden wins as he is planning to push the country towards green energy.

Alternative energy stocks soared sharply in the past few weeks amid anticipation for Biden win. For instance, Brookfield Renewable Partners (NYSE: BEP) stock jumped close to 5.1% on Monday while Enphase Energy (NASDAQ: ENPH) stock grew 8.1% increase.

Infrastructure stocks and diversified industrial companies are likely to benefit from Joe Biden’s policies as Trump’s trade restrictions have created a lot of uncertainty for these companies in the past four years.

The small caps could also race higher in case of democrats win amid Biden’s plan of offering big stimulus packages to companies that are struggling due to the virus spread.

The potential losers if Trump loses elections

Pharma and biotech stocks are likely to feel the pressure in case of Joe Biden win. The democrats are against high prescription drug prices.

Banks could also face pressure amid concerns over more regulations. Fossil fuel stocks could also fall as the democrats are pushing towards green energy.    

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.