- U.S. politics grew more uncertain as Vice President Kamala Harris was endorsed by now-outgoing President Joe Biden to become the Democratic Party’s presidential nominee
- What implications could investors expect, given Harris’ track record and policy priorities?
- Harris is known for her close relationships with prominent tech executives and investors, particularly in the Bay Area, her home base
- Harris’ climate and energy positions mostly align with those of Biden, emphasizing clean energy and environmental justice
The future of the U.S. politics grew more uncertain Sunday as now-outgoing President Joe Biden endorsed Vice President Kamala Harris to become the Democratic Party’s presidential nominee.
Many in the investment and big business spheres now look at two very different possible futures.
Now that President Biden finally capitulated that his shot at another president term was fading, if the Democratic Party agrees to support Harris’ bid to follow in Biden’s footsteps and ascend to the main chair in the oval office, what implications could investors expect, given Harris’ track record and policy priorities?
The big tech pressure campaign
As vice president, Harris has been an influential figure in shaping tech policy. Her pressure campaign led major tech companies such as Google owners Alphabet (NDAQ:GOOG), Microsoft (NDAQ:MSFT) and Meta Platforms (NDAQ:META) to take measures to remove explicit images and address online safety. Harris’ proactive stance on tech regulation indicates her willingness to hold tech giants accountable, which could signal more stringent regulatory environments for these companies in the future.
Harris is known for her close relationships with prominent tech executives and investors, particularly in the Bay Area, her home base. This network includes key supporters such as former Facebook COO Sheryl Sandberg and Salesforce (NYSE:CRM) CEO Marc Benioff. Such connections could foster a business-friendly atmosphere, although it remains to be seen how her regulatory stance will balance with her industry ties.
AI and technology regulations
Harris has been particularly vocal about the risks associated with artificial intelligence. In a November 2023 address, she warned about the “existential” threat of AI, emphasizing that it could “endanger the very existence of humanity.” Her meetings with tech leaders such as Microsoft’s Satya Nadella, OpenAI’s Sam Altman, and Alphabet’s Sundar Pichai highlighted the moral obligation these companies have to mitigate AI’s potential dangers.
Backing an AI executive order from Biden, Harris advocated for stronger consumer protections against AI-generated scam calls and the impacts of unlabeled AI-generated content. Investors in the tech sector should brace for potential regulatory changes aimed at ensuring ethical AI development and deployment.
Climate and energy policies
Harris’ climate and energy positions mostly align with those of Biden, emphasizing clean energy and environmental justice. She has consistently prioritized these areas throughout her career, underscoring her commitment to combatting climate change and supporting sustainable practices.
During her tenure as vice president, Harris has been actively involved in Environmental Protection Agency policy rollouts aimed at addressing long-standing environmental justice issues, such as a multibillion-dollar program to replace lead pipes and lead paint nationwide.
In her debut at international climate negotiations last year, she announced a US$3 billion commitment to the Green Climate Fund and delivered a major speech focused on climate change. Investors in the clean energy sector can expect continued support and potentially increased funding and incentives under a Harris administration.
Hail to the chief?
As Harris steps into the spotlight as a potential presidential candidate, her policies and relationships with key industry players will undoubtedly shape investor sentiment. Her tough stance on tech regulation, commitment to environmental justice, and proactive approach to AI safety present challenges and opportunities for various sectors. Investors will need to closely monitor her policy developments and their potential impact on the market as the 2024 presidential race unfolds.
Does the ‘Trump trade’ still have value?
On the other end of the spectrum, Republican front-runner Donald Trump has been riding support from investors in the resource industry who see his return to the White House as good for the markets. Although many could see Harris in opposition as a solid alternative to the “Trump trade.”
“The trade began after the weak CPI figures on (July 11) started a rally in small and value stocks, combined with a rotation away from large growth stocks, which had been leading all year,” VT De Lisle America fund manager Richard de Lisle told U.K.-based Investmentweek. “The continuation of the move last week was then accredited to Trump as these beneficiaries of lower interest rates are a similar group to Trump beneficiaries.”
According to Bloomberg, the “Trump trade” is an idea that less regulation and lower taxes could fuel the titans of industry, particularly in two big-money areas: banking and big oil.
His Trump Media & Technology Group (NDAQ:DJT) company opened a little more than 1 per cent lower Monday. The stock had been flat since riding a surge after his attempted assassination earlier this month.
The ripples of this news will impact markets around the world. As the ASX opened hours after the announcement, our colleagues at The Market Online Australia also looked at how the Biden-Harris development will impact their futures.
Join the discussion: Find out what everybody’s saying about these stocks on Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top photo: Whitehouse.gov)