President Donald Trump has reignited trade tensions by announcing plans to impose tariffs of up to 25% on imports from Mexico and Canada. The move, set to take effect by February 1, targets America’s immediate neighbors for allegedly enabling the flow of undocumented migrants and drugs into the U.S. This decision risks destabilizing trade among the United States-Mexico-Canada Agreement (USMCA) partners, who collectively govern $1.8 trillion in annual trade. Both Canada and Mexico have signaled plans to retaliate with tariffs on U.S. goods, escalating the likelihood of a trade war. Canadian officials unveiled a preliminary list targeting $105 billion worth of American-manufactured products, while Mexico raised concerns about inflationary pressures that could impact both nations. Economic Fallout Looms The proposed tariffs would significantly disrupt industries reliant on cross-border trade, particularly the U.S. auto sector. Analysts estimate that these measures would affect $97 billion...

The markets saw a sweeping reaction today as Donald Trump secured a return to the White House. Major indexes closed at record highs, marking a historical post-election jump. The Dow Jones Industrial Average rose by 3.5%, the S&P 500 by 2.5%, and the Nasdaq by 2.9%. Investors flocked to stocks likely to benefit from Trump’s business-friendly policies, driving significant gains in sectors ranging from tech to finance. Tesla ( TSLA ) Rockets Up 15% as Musk and Trump Align on Business Policy Tesla shares surged 15% as CEO Elon Musk’s endorsement of Trump and significant donations to his campaign aligned with investor optimism for a Trump-led economy. Musk’s support reflects shared views on deregulation and “pro-genius” policies, as Trump described Musk as a “super genius” in a recent victory speech. Investors anticipate that Trump’s presidency may relax regulations, allowing Musk to pursue Tesla’s ambitious autonomous driving and robotaxi initiatives with fewer hurdles. The stock’s per...

As the 2024 U.S. presidential election approaches, markets are on edge, anticipating how a victory by either candidate—Donald Trump or Kamala Harris—could reshape the economic landscape. With recent dips across major indexes, investors are closely monitoring Election Day as a pivotal event with the potential to jolt market sentiment and alter financial strategies for the remainder of the year. 1. A Market in Limbo: Analyzing the Immediate Election Impact Election Day brings inherent uncertainty to the market, especially when the outcome is too close to call. With the S&P 500 and Nasdaq showing slight declines in the week before the election, investors remain apprehensive. Historically, election years tend to see heightened volatility; however, October 2024 was an anomaly, marking one of the least volatile lead-ups to an election in recent decades. This stability contrasts with the elevated implied volatility in options markets, which suggests traders are preparing for abrupt price ...

Robinhood Markets ( HOOD ) is shaking up the financial landscape by allowing users to bet on the outcome of the upcoming U.S. presidential election. Starting this week, eligible Robinhood users can trade contracts on whether former President Donald Trump or Vice President Kamala Harris will win the November election. The brokerage’s new feature is the latest move in the nascent event-contract market, following recent court rulings that made this form of speculation more accessible to U.S. investors. Robinhood’s election contracts fall under a category known as event-based contracts, which allow investors to make returns based on real-world events. Each contract is priced according to market sentiment about a candidate’s odds, fluctuating in real time as new polls or events sway public opinion. Users will see payouts of $1 per contract if they bet on the correct outcome, with prices ranging between $0.02 and $0.99 per contract, depending on current sentiment. Event Contracts: A Growing ...

As the 2024 U.S. presidential election approaches, the policies of Vice President Kamala Harris and former President Donald Trump present starkly different visions for the future. Both candidates promise significant changes that will impact key sectors of the economy, and investors must prepare for the potential shifts. Here’s a closer look at how different industries and companies might fare under a Harris or Trump presidency, with a focus on the emerging impact of AI. Kamala Harris Victory: Emphasis on Technology, Infrastructure, and AI Safety A Kamala Harris presidency would likely build on the Biden administration’s economic policies with an even sharper focus on technology, infrastructure, and middle-class economic growth. Harris has emphasized the need to strengthen domestic industries, regulate corporate practices, and invest in underserved communities. One of the key areas of her campaign is artificial intelligence (AI) regulation and safety. Winners: Infrastructure and Industr...