Markets React to Political Shakeups: What’s Next?

Trump Media may be categorized as a meme stock, according to a strategist, as markets reacted to significant political events. The Nasdaq surged by 1.5%, gaining 277 points on Monday afternoon, following President Joe Biden’s withdrawal from the presidential race and his endorsement of Vice President Kamala Harris. The Dow Jones Industrial Average and the S&P 500 also saw increases of 0.3% and 1.1%, respectively.

Polymarket, a crypto-based betting platform, has declared Harris as the leading Democratic nominee for president, while New Zealand’s PredictIt predicts she could become the 47th president of the United States.

In other market news, Nvidia’s shares rose by 4% after reports emerged that the company is creating a version of its Blackwell AI chips tailored for the Chinese market. Nvidia is said to be collaborating with local distributor Inspur to launch the chip, named the “B20,” expected to start shipping in the second quarter of 2025. The company has not commented on this development.

Tesla’s stock jumped nearly 5% ahead of its earnings report, where CEO Elon Musk is anticipated to address the delay in the rollout of the company’s robotaxi service. Musk stated on social media that Tesla expects to have usable humanoid robots in low production for internal purposes next year, with hopes for higher production levels for external companies by 2026.

CrowdStrike, the cybersecurity firm involved in Friday’s global tech outage, is experiencing a slow recovery. The company reported that a significant number of the approximately 8.5 million impacted Windows devices are now operational again. However, CrowdStrike’s stock was down over 13% in afternoon trading on Monday, hovering around $263.

Verizon experienced a sharp decline of nearly 6% following the release of its quarterly earnings report. The company missed revenue expectations, attributed to customers keeping their old phones for longer periods, which has negatively affected upgrade rates. Verizon reported second-quarter revenue of $32.8 billion, slightly below the $33.06 billion analysts predicted, while its earnings per share stayed in line at $1.15.

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