Renewable energy and cannabis-related stocks take a hit as election race tightens
- Renewable energy and cannabis-related stocks take a hit as election race tightens.
- The SPDR S&P Oil & Gas Exploration and Production ETF was reported about 2.3% up.
- The ETFMG Alternative Harvest ETF (MJ) slid 1.9% as Trump secured lead in 3 key states.
Renewable energy and pot stocks took a significant hit on Wednesday as President Donald Trump secured a lead in Texas, Ohio, and Florida. These stocks are expected to gain if Biden is elected as the new president of the United States.
The SPDR S&P Oil & Gas Exploration and Production ETF (XOP) was reported about 2.3% up on Wednesday. Traditional energy companies are expected to celebrate on Trump’s re-election as his administration is likely to favour lenient tax environment and regulations for such companies.
Exxon Mobil Corp jumped 1.8% in the stock market
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Chevron Corp (NYSE: CVX) jumped 0.6% on Wednesday, while Exxon Mobil Corp (NYSE: XOM) was reported 1.8% up. Solar energy stocks were also registered under pressure on Wednesday. The Invesco Solar ETF (TAN) was down about 3% on Wednesday. Since September, it has gained over 40%.
The iShares Global Clean Energy ETF (ICLN), another representative of the developing sector, was also dropped 2% on Wednesday. NASDAQ and S&P 500 futures also climbed early on Wednesday as election race tightened.
Vice-presidential candidate, Kamala Harris, expressed plans that Biden administration will decriminalise marijuana at the federal level. Following her remarks in the vice-presidential debate, major cannabis producers were reported upbeat in the stock market.
The ETFMG Alternative Harvest ETF (MJ) slid 1.9% on Wednesday, on course for its worst intraday performance since September. Tilray, Cronos, Canopy Growth, and Aurora Cannabis were reported trading in the range of 3% to 6.3% lower on Wednesday.
Technology stocks were upbeat early on Wednesday
On the technology front, Technology Select Sector SPDR Fund (XLK) and Invesco QQQ ETF both were seen about 2.3% up on Wednesday. The U.S. technology giants have benefited from anti-trust and regulatory leniency under Trump’s administration.
Microsoft, IBM, and Intel, jumped between 0.4% and 2.2% in the stock market on Wednesday. Facebook, Apple, Amazon, Netflix, and Google, also climbed 2.3% each.
Other prominent price actions in premarket trading on Wednesday include CoreCivic Inc. and Geo Group that gained 6.5% and 1.9%, respectively.
Biden has already been vocal about his plans of minimising the use of private prisons by the federal government. Both these stocks remained under pressure in recent months.
At the time of writing, the benchmark S&P 500 index is about 3.5% up year to date after recovering close to 50% since March. Nasdaq Composite is more than 20% up in 2020 so far while Dow Jones Industrial Average is close to 5% down.