Trump Trade Resurfaces as Markets Price In Potential Second Term

Donald Trump has seen a recent surge in his chances of winning a second presidential term, causing financial markets to react and investors to reconsider their positions. This shift began with Biden`s poor performance in the June debate, leading some Democrats to question his ability to win. Since then, Trump has solidified his position, surviving an assassination attempt, choosing a younger running mate, and gaining support from former rivals. He has also moderated his stance, aiming to appeal to a broader range of voters and investors by promising stability and continuity. This includes potentially retaining Jerome Powell as Fed Chair and considering Jamie Dimon for Treasury Secretary. These factors, combined with Trump`s rising poll numbers and the possibility of a Republican sweep in Congress, have led to increased investor confidence in a potential second Trump term, impacting market trends and causing a shift away from tech stocks towards smaller companies.