No matter how the election turned out, stock markets typically fare well afterward. Traders may profit from the volatility.
Expect volatility in U.S. Treasury yields. Their increase would increase the attractiveness of the U.S. Dollar (DXY). It would also put pressure on U.S. bank stocks. Look out for JPMorgan (JPM), Bank of America (BAC), Citigroup (C), and Wells Fargo (WFC) pulling back. Banks need the 20+ Year Treasury Bond ETF (TLT) to rebound. TLT stock peaked at $101.64 in September.
On Nov. 5, 2024, the Institute for Supply Management reported its non-manufacturing purchasing managers index. It increased to 56.0 last month. This is the highest level since August 2022. The strong reading suggests that the incoming President would benefit from the strong employment, falling prices paid, and continued strength in new orders.
Technology stocks should move independently from the post-election event. Their valuations are high but deserve the premium. AI-related suppliers like Nvidia (NVDA) and Advanced Micro Devices (AMD) are thriving. Intel (INTC) has its issues yet its long-term investments in manufacturing plants will pay off.
Intel also released a new generation of Ultra core desktop chips. As it updates its software bios, performance for office-related, productivity, and video editing software will rise.
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