Investors based in the UK can trade on US stocks through our derivative products. A large number of the world’s largest companies by market capitalisation are based in the US, including four companies that have surpassed the trillion-dollar mark. The US is renowned for its development in technology, energy and healthcare; however, whereas some stocks may thrive in the aftermath of the election, others may crash.
Therefore, traders will be wondering: what is the election’s effect on the stock market? Let’s take examples from a few of the most prominent sectors.
Technology: Biden has often expressed his discontent with the increasing power that large-cap technology companies have over market share and insight into the public’s general life. In particular, he wants to propose higher taxes on tech giants, which could result in a plunge in both their profits and share price. Share prices to look out for during the election include Alphabet, Amazon, Apple and Microsoft.
Healthcare: The healthcare industry has been particularly volatile recently, due to the global Covid-19 pandemic and the US election could have an impact on different sub-sectors. For example, Biden’s plan for more affordable healthcare could lead to a decrease in share price for drug manufacturers and insurers. Look out for top pharmaceutical stocks such as Pfizer, Merck and Novartis, whose share prices could take a rise or tumble.
Energy: Whereas Trump is very outspoken about his disbelief of risks of climate change and the need for energy alternatives, Biden is dedicated to focusing on renewable energy and sustainable infrastructure, and his triumph could lead to a drop in share price for large oil and gas companies including Exxon Mobil, Chevron and BP. This would work in a reverse way for renewable energy stocks, such as Tesla and First Solar, whose share prices could reach an all-time high.
Read more about share trading >