November 5, 2024
Stocks to watch if Kamala Harris wins the US election #UKFinance

Stocks to watch if Kamala Harris wins the US election #UKFinance

CashNews.co

As the 5 November US presidential election approaches, the stock market is abuzz with speculation about how a tight race between vice president Kamala Harris and former president Donald Trump will unfold.

Investors are particularly focused on how differing policy approaches to climate, energy, and taxation could shape market dynamics. Harris would likely continue many of the Biden administration’s policies, influencing sectors differently.

With the race for the White House heating up, these stocks are set to benefit if Harris claims victory.

Harris’s track record on climate policy suggests that a victory for her could bolster the renewable energy sector. Her pivotal role in passing the Inflation Reduction Act indicates a commitment to green initiatives, in stark contrast to Trump’s plans to dismantle existing climate measures, which he has labelled a “green new scam.”

“Exchange-traded fund First Trust Nasdaq Clean Edge Green Energy (QCLN) might be one to watch if Harris becomes US president,” Dan Coatsworth, investment analyst at AJ Bell, said.

“88% of its assets are held in US-listed green companies ranging from renewable energy operators, semiconductor groups, electric vehicle manufacturing and battery material specialists,” he added.

Read more: FTSE 100 LIVE: European markets mixed ahead of US election and UK interest rate decision

Shares of First Solar (FSLR), America’s largest builder of solar panels, have dropped by almost 18% in the past month amid a backdrop of industry volatility and election uncertainty. A Harris win could present a buying opportunity for investors looking to capitalise on the recovery of renewable energy stocks.

A Harris presidency could also boost homebuilders such as DR Horton (DHI), KB Home (KBH), and Lennar (LEN-B) amid her plans to increase housing supply and affordability through tax incentives, alongside a favourable interest rate environment.

“Harris has been vocal about offering support to the housing market, in part by committing to building three million new homes, but also through other actions like incentives to new buyers,” Kathleen Brooks, founder of Minerva Analysis, said.

“As America’s largest new homebuilder by volume, Horton looks well-placed to capitalise on any federal push to increase the housing supply,” she added.

Healthcare has been a focal point of Harris’s campaign, with promises to cap prescription drug prices, including insulin.

While this may squeeze profit margins for pharmaceutical giants like Eli Lilly (LLY) and Merck (MRK), healthcare insurers such as Humana (HUM) and UnitedHealth Group (UNH) could see benefits from expanded coverage initiatives under a Harris administration.

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