In the wake of the COVID-19 pandemic and lockdowns happening across the country limiting business activity, the stock market has seen an immense drop. Moreover, the election results are about to be announced and people are glued to their screens hoping that their favorite candidate wins. However, in this article, we will examine how the stock market will react if Biden wins.

stock market will react, if Biden winsAn insight can be taken from Joe’s policies as to what will be the reaction of the investors and how the stock market will act.

On the bright side, Biden’s policy of electrification could lead to an increase in the stock value of companies like Tesla – a company that is already enjoying stock market success in the Trump-era as well. Not only this, the healthcare sector may also expect a rise in their stock value as Joe’s immediate response is to expand Obamacare and provide free testing for the novel coronavirus to everyone.

On the contrary, during his campaign, Biden declared that he will be investing heavily into green energy projects. Due to his vision of green America, the oil and gas sector will face heavy losses. It could also result in a great stock drop for companies in respective fields.

How the stock market will react, if Biden winsMoreover, according to the plan, if Biden follows antitrust investigations and reduces its influence, then many big tech companies would also face a downfall. An increase in corporate tax by 28 percent may also lessen the stocks of many businesses.

Apart from the fall in the stock market, many analysts are also fearing that a few big firms may end up leaving the country due to a heavy shift in the stock market.

All in all, a senior lecturer in finance from the University of Arizona has predicted at least a 5% fall in the stock market within a few days of Biden’s tenure, and around a 20% to 30% drop by the end of the first year of his 4 year term.

It’s now just a matter of time and we will realize if the predictions made by the analysts and the pundits would become true, or if he will defy all these predictions.