Renewable energy and cannabis-related stocks are suffering a blow as the election campaign intensifies.
The SPDR S&P Oil & Gas Exploration and Production ETF posted a 2.3% gain.
The ETFMG Alternative Harvest ETF (MJ) fell 1.9% as Trump secured leadership in 3 key countries.
Renewable energy and top tier stocks suffered a significant blow on Wednesday as President Donald Trump secured leadership in Texas, Ohio and Florida. These stocks are expected to rise when Biden is elected as the new president of the United States.
The SPDR S&P Oil & Gas Exploration and Production ETF (XOP) gained approximately 2.3% on Wednesday. Traditional energy companies are expected to celebrate Trump’s re-election as his administration is likely to favor a lenient tax environment and regulations for such companies.
Exxon Mobil Corp. gained 1.8% on the stock market
Chevron Corp (NYSE: CVX) was up 0.6% Wednesday, while Exxon Mobil Corp (NYSE: XOM) was up 1.8%. Solar energy stocks were also registered under pressure on Wednesday. The Invesco Solar ETF (TAN) fell about 3% on Wednesday. Since September it has gained over 40%.
The iShares Global Clean Energy ETF (ICLN), another representative of the developing sector, also lost 2% on Wednesday. NASDAQ and S&P 500 futures also rose early on Wednesday as the election campaign intensified.
Vice presidential candidate Kamala Harris voiced plans for the government to decriminalize Biden Marijuana at the federal level. After her remarks in the vice president’s debate, it was reported that the major cannabis producers on the stock market were optimistic.
The ETFMG Alternative Harvest ETF (MJ) fell 1.9% on Wednesday, on the way to its worst intraday performance since September. Tilray, Cronos, Canopy Growth and Aurora Cannabis traded lower in the range of 3% to 6.3% on Wednesday.
Technology stocks were optimistic early on Wednesday
On the technology front, the Technology Select Sector SPDR Fund (XLK) and the Invesco QQQ ETF posted gains of approximately 2.3% on Wednesday. The U.S. technology giants have benefited from the antitrust and regulatory leniency under the Trump administration.
Microsoft, IBM and Intel gained between 0.4% and 2.2% in the stock market on Wednesday. Facebook, Apple, Amazon, Netflix and Google also gained 2.3% each.
Other prominent price actions in pre-trade trading on Wednesday were CoreCivic Inc. and Geo Group, which gained 6.5% and 1.9% respectively.
Biden has already spoken out loud about his plans to minimize the use of private prisons by the federal government. Both stocks have remained under pressure in recent months.
At the time of writing this article, the S&P 500 benchmark index is up about 3.5% over the year to date, having rallied by nearly 50% since March. The Nasdaq Composite has so far risen by more than 20% in 2020, while the Dow Jones Industrial Average has fallen by almost 5%.