Stock Markets Brace for Presidential Elections: Financial experts predict increased volatility in the stock market
as the November U.S. presidential elections approach. This is due to the uncertainty surrounding government policies.

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Stock Markets Brace for Presidential Elections

Decline in Chinese Electric Vehicle Stocks

Potential Drop in the S&P 500 Index

Stock Markets Brace for Presidential Elections

Financial experts predict increased volatility in the stock market due to the uncertainty surrounding government policies
as the U.S. presidential elections in November approach.
If President Trump wins a second term, his priorities are expected to focus on trade agreements,
imposing higher tariffs on imports, and reducing business regulations.
Domestic steel, timber, aluminum, and solar panel manufacturers could benefit from increased import tariffs.

Additionally, traditional energy and finance industries may benefit from easing government regulations.
Financial experts suggest that “loosening antitrust laws could lead to increased mergers and acquisitions.”

If Joe Biden wins a second term, he is believed to maintain the current status quo,
with the possibility of raising corporate taxes to fund government spending
if the Democratic Party controls both the House and the Senate. However, experts consider this scenario unlikely.

Decline in Chinese Electric Vehicle Stocks

Shares of Chinese electric vehicle manufacturers fell on Friday following reports
that the Canadian government is considering imposing new taxes on the import of electric vehicles produced in China.
This move aims to align with measures already taken by the United States and the European Union.

Although the Canadian government has not yet decided,
officials hinted that a public consultation period for feedback on the proposed taxes on
Chinese electric vehicle imports will be announced soon.
According to a Bloomberg News report, this is likely to affect the import of these vehicles into Canada.

In pre-market trading on Friday, shares of Nio and Li Auto, traded in the United States, fell by 1.4% and 1.5%, respectively.

Potential Drop in the S&P 500 Index

JP Morgan warns that a decline in short-sold stocks could make the S&P 500 Index vulnerable.
The bank notes that this decline reflects a lack of investors expecting a downturn in major exchange-traded funds like SPY and QQQ.
This shortage of bearish sentiment has supported U.S. stocks and reduced their price volatility over the past year.

More specifically, JP Morgan points out that fewer investors expect a market decline,
with many holding onto short positions. The bank expresses concern that this behavior could become excessive,
leading to increased volatility and potential negative impacts.

Stock Markets Brace for Presidential Elections

Stock Markets Brace for Presidential Elections

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