The announcement of Senator Kamala Harris as Joe Biden's running mate delighted many financial analysts, CNBC reported on Tuesday. The news agency expressed optimism that the Democratic ticket "has what it takes to topple President Donald Trump," and expressed confidence in Harris's vast government experience and fundraising expertise.
Forbes analysts, however, were quick to bemoan the fact that the announcement narrowed the gap between Biden and Trump, at least according to OddShark, an online betting agency, which has been keeping tabs on the odds of Trump winning against Biden.
Harris previously ran for president and raised some $40 million for her campaign before dropping out. She is the first biracial woman to be placed on the ballot, which Democrats hope will appeal to a wider audience. She also has significant political experience; Harris served as an attorney general in California and has been the state's senator since 2017. The Democratic party has recently been trailing the Republicans in the fundraising department and supporters are hopeful that Harris's nomination will help even the playing field.
On a political level, many analysts are confident that Harris will keep Biden towards a centrist leaning and would not encourage Biden to be too progressive on major policy issues.
Market Movements
The dollar index was modestly lower following the news, declining 0.03 percent as of 9:37 a.m. GMT on Wednesday. The euro was up 0.11 percent against the greenback to trade at $1.175, while the British pound was up 0.08 percent despite a steeper-than-expected fall in the country's GDP which was reported early Wednesday morning. The dollar's losses were tempered by gains against the yen, with the greenback gaining 0.28 percent to trade at 106.78.
The S&P 500 snapped its seven-day winning streak on Tuesday, closing down 0.80. The NASDAQ closed down 1.69 percent, and the Dow Jones Industrial Average ended lower by 0.38 percent. The declines came on the heels of announcements by major college sports organizers that the upcoming season would be postponed, a sign that the recovery process isn't stabilized yet and that things are not quite back to normal. Also flogging the U.S. markets was Congress's inability to finalize the next round of financial aid for those struggling in the wake of the coronavirus.