Traders Across Assets Are Bracing for Possible Democratic Sweep
- Renewable energy stocks and yuan rise on potential policy turn
- Joe Biden is expected to boost spending, ease trade tension
Photographer: Jim Watson/AFP via Getty Images
Even with the White House pushing a new $1.8 trillion stimulus plan, it’s unclear if anything will get done before the presidential election. The Senate is opposed to an expansive program, and Majority Leader Mitch McConnell said his priority is the Supreme Court nomination, not fiscal aid.
Despite the uncertain timing, investors are betting that more stimulus will come eventually. After all, keeping the economy growing is going to be a priority for whoever wins the election on Nov. 3. Moreover, with the Democrat Joe Biden widening his lead in polls over President Donald Trump, investors across asset classes are starting to prepare for a potential Democratic sweep, which could bring even bigger government spending in early 2021, a less contentious trade policy and a focus on infrastructure and clean energy.