Illustration of Trump's Comeback Sparks Market Rally Amid Political Shifts

Trump’s Comeback Sparks Market Rally Amid Political Shifts

Market analysts are predicting a strong comeback for Donald Trump and the Republican party following President Joe Biden’s recent withdrawal from the presidential race and his endorsement of Vice President Kamala Harris.

On Monday afternoon, stock indices showed positive momentum, with the Nasdaq up by 1.5% (a gain of 277 points), while the Dow Jones Industrial Average rose by 0.3% and the S&P 500 increased by 1.1%. This surge comes as betting platforms like Polymarket and PredictIt indicate that Harris is poised to be the Democratic candidate and speculatively the 47th president of the United States.

In corporate news, Nvidia saw a 4% increase in its shares after it was reported that the company is developing a new version of its Blackwell AI chips specifically for the Chinese market, in collaboration with local partner Inspur. The anticipated release of the B20 chip is set for the second quarter of 2025.

Tesla also performed strongly, with shares rising nearly 5% ahead of its forthcoming earnings report. Elon Musk shared updates on the company’s innovation in humanoid robots, indicating that those for internal use are expected to enter low production next year, while high production for external customers is targeted for 2026.

However, not all companies are faring well. CrowdStrike, the cybersecurity firm linked to a significant global tech outage last week, has seen its stock drop by over 13%, although it reports that most of the approximately 8.5 million affected Windows devices are now operational.

Verizon’s stock dropped nearly 6% following its quarterly earnings report, which revealed a revenue miss stemming from customers holding onto their old phones longer than anticipated—a trend impacting upgrade rates industry-wide. Despite second-quarter revenue of $32.8 billion being slightly below analyst expectations, the company’s earnings per share remained in alignment with predictions.

Overall, the financial landscape exhibits a mix of optimism and challenges as political changes and market dynamics unfold.

**Summary:** Following President Biden’s exit from the presidential race, stock markets have reacted positively, with a significant boost for indices like Nasdaq. Companies like Nvidia and Tesla are seeing stock gains due to new product developments, while cybersecurity firm CrowdStrike and telecommunications giant Verizon are facing challenges.

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