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Dow Rallies as Investors Look Ahead to First Trump-Biden Debate


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Dow Rallies as Investors Look Ahead to First Trump-Biden Debate

The Dow Jones rallied 200 points on Friday.Boeing led the way in the Dow 30, as the tech sector also continues to rally.Investors are now looking ahead to the first presidential debate next week.The Dow Jones rose on Friday, as investors turned their attention to the first presidential debate between Donald Trump and Joe Biden.Dow…

  • The Dow Jones rallied 200 points on Friday.
  • Boeing led the way in the Dow 30, as the tech sector also continues to rally.
  • Investors are now looking ahead to the first presidential debate next week.

The Dow Jones rose on Friday, as investors turned their attention to the first presidential debate between Donald Trump and Joe Biden.

Dow Jones Rallies for a Second Straight Day

A soft start to the day reversed, as all three major U.S. stock market indexes rallied on Friday. The Nasdaq led with a 1.5% gain, while the Dow and S&P 500 rose around 1% each.

Dow Jones, stock market
The Dow rose 200 points on Friday. | Source: Yahoo Finance

There wasn’t much in the way of U.S. economic data, as durable goods orders were the only high tier economic release. Orders severely underperformed estimates, rising just 0.4% against expectations of a 1.2% gain.

Coronavirus cases are back in focus as Europe endures the long forecast second wave, with cases exceeding record highs in several nations. With cases now over 7 million in the United States, concerns about this happening in the U.S. are growing–and could explain why the tech sector appears to be outperforming once again.

Watch the video below to see all the states where cases are currently rising in the U.S.

First Trump-Biden Debate In Focus Next Week

As the U.S. barrels towards the presidential election, financial markets could face their first major political risk event of the year.

Economists at ING believe there is a chance that next Tuesday’s debate between President Trump and Democratic nominee Joe Biden will impact the stock market, laying out the potential for a bump in stocks if Trump has a strong day:

Biden goes into the debate with around a 7% lead in opinion polls and will face a stern test from President Trump – typically a strong performer in events like these… One school of thought is that a strong Trump performance is equity positive/dollar negative. We have the view, were Biden to win, the dollar could decline in 2021 on a benign world view – but let’s look out for the price action on Wednesday.

It is fair to say that expectations are not high for Biden’s performance in a debate with Trump, putting more pressure on the president to outperform. If Biden holds his own at all, it would likely be construed as a victory for his campaign. That could be a blow to the Dow.

Predicting which outcome Wall Street is anticipating in November may be impossible. Still, a recent study suggests investors may be positioned for a Biden victory–allowing for a sizeable reaction if Trump remained in power.

Watch the video below for another expert take on the uncertainty surrounding the election.

Dow 30 Stocks: Boeing Flies, Apple Gains

On a positive day for the Dow 30, aerospace giant Boeing was the leader with a 4% rally, as it continues to be an extremely volatile stock.

Despite the market’s recent climb, there are plenty of voices still calling for downside. Watch the video below for CIO Jim Paulsen’s fears of another major selloff.

Apple was also a strong performer, climbing 2.2%, while the Dow Jones’ most heavily weighted member, UnitedHealth, rose 1.5%.

After releasing some stellar earnings this week, Nike stock was the weakest in the Dow, falling 1.5%.

Sam Bourgi edited this article for CCN.com. If you see a breach of our Code of Ethics or find a factual, spelling, or grammar error, please contact us.

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