Trump expands lead against Harris, on track to become the 47th US President
2024-11-06

Republican nominee Donald Trump is on track to become the 47th US President, having made significant strides in the 2024 US presidential election, clinching key battleground states of North Carolina and Georgia.
This marked a shift from 2020, with Trump outperforming in regions where he had previously lagged. 
With the Republican Party also gaining control of the Senate, the results signal strong support for Trump’s potential return to the White House. 
Trump currently leads in other vital states, including Wisconsin, Michigan, Pennsylvania, and Arizona, while vote counts continue.
This early performance has triggered a notable response from financial markets. 
S&P 500 futures rose by 1.2%, US 10-year Treasury yields climbed to a four-month high of 4.44%, and Bitcoin surged by nearly 7%, reflecting investor expectations that a Trump win could bring stable or elevated interest rates.
Republican Senate control a game-changer for policy outlook
In addition to the presidential race, Republicans have secured control of the Senate, capturing at least 51 seats. 
The GOP successfully defended key seats in Texas and Nebraska and flipped Democratic seats in Ohio and West Virginia. 
Key figures like Jim Justice in West Virginia and Bernie Moreno in Ohio led the Republican effort to gain ground, reshaping the legislative landscape.
Control of the House of Representatives, however, remains undecided, with a close race making it challenging for either party to claim a decisive victory. 
As the political landscape shifts, investors are preparing for potential policy changes affecting sectors like finance, defense, and energy, all of which are sensitive to Republican leadership.
Market reactions mirror political shifts; volatility looms
Trump’s early lead has fueled investor optimism in sectors traditionally associated with his economic policies. S&P 500 futures climbed, and Treasury yields surged, suggesting that traders anticipate prolonged interest rate stability and a potentially business-friendly administration. 
Bitcoin, a crypto market favourite, spiked nearly 7%, while defense and cryptocurrency-related stocks in Asia also experienced gains, underscoring global market alignment with the US political climate.
“The market is positioning for a potential Trump victory,” said Chetan Seth, an equity strategist at Nomura Holdings Inc. 
We may see heightened volatility until results are finalized, but these early numbers signal to investors what a Trump administration could mean for economic policy.
In Japan, the Nikkei 225 index rose as a stronger dollar softened the yen, benefiting Japan’s export-driven economy. 
The Hang Seng China Enterprises Index in Hong Kong, however, fell more than 3%, reflecting concerns over renewed trade tensions under Trump’s leadership, which could adversely impact Chinese firms.
Voting extends in key states amid record turnout
Across the US, high voter turnout, long lines, and extended voting hours signaled intense engagement in this election. 
In Nevada, Allegiant Stadium was transformed into the largest polling site in state history, with officials reporting significant participation, particularly among younger voters. 
Delays occurred in Georgia, where bomb threats briefly interrupted voting, extending polling hours. In response, Georgia election officials vowed to maintain safety and accessibility throughout the day.
Cedric Richmond, co-chair of Kamala Harris’s campaign, noted that votes were still being counted and urged supporters to remain patient. 
The Harris campaign is holding onto hope in swing states like Pennsylvania and Michigan, which could narrow the gap in electoral votes if they swing blue.
An election marked by legal battles and historic firsts
The 2024 race has been one of the most divisive in recent US history. 
For the first time, an incumbent president, Joe Biden, chose not to seek reelection, leaving Vice President Kamala Harris as the Democratic nominee. 
Harris’s campaign, which launched just months prior, aims to make history with her as the first Black and Asian American female president. 
She has framed her campaign as a departure from Trump’s policies, focusing on issues of democracy, civil rights, and economic reform.
Trump’s campaign, on the other hand, represents a controversial return. 
Running as the first former president convicted of a felony, Trump’s campaign has been underscored by his legal battles, including convictions related to hush-money payments and other charges. 
His return to the presidential race underscores his influence over the Republican Party and the resilience of his political base.
Polls reveal voter discontent with economic conditions
Exit polls from Tuesday’s vote showed that economic concerns were top of mind for Americans. 
According to a consortium of networks, including NBC and CNN, nearly half of surveyed voters expressed frustration over rising costs of essentials such as gas and housing. 
More than 70% of respondents stated that they were dissatisfied or angry with the state of the country. The poll also found President Biden’s approval rating at 41%, a factor that may have contributed to Harris’s uphill battle.
As results continue to come in, Pennsylvania remains pivotal. The state, which Trump recently visited after surviving an assassination attempt, could play a decisive role in determining the outcome. 
Polling stations across the state reported high turnout and long lines as voters cast ballots in the critical battleground.
The long road to final results
Given high turnout and extended voting hours in certain areas, officials have cautioned that final results might take time to confirm. 
This uncertainty is contributing to market volatility, as investors await clarity on the election outcome. 
With Trump showing strength in initial returns, both investors and political analysts are preparing for a possible shift in policies and regulatory focus.
Should Trump claim victory, markets are likely to anticipate a shift toward pro-business policies and a tougher stance on international trade, especially with China. 
Meanwhile, Harris has positioned herself as an advocate for a more inclusive economy with tighter regulations on big business.
As the election unfolds, markets and the political landscape await the final outcome, which could solidify the Senate’s new Republican majority and potentially shift the balance of power in the House. 
This election may bring about sweeping changes in policy, trade, and economic strategy, keeping the US and global investors closely tuned to every development.