NEW YORK - Investors are grappling with the market implications of a possible Kamala Harris presidential administration, which could pressure corporate profits through higher taxes while weighing on consumer staples and boosting solar energy.
"She seems to be on a track to be more aggressive than the Biden administration on a lot of these consumer issues that go right to the market," said Frank Kelly, senior political strategist at investment firm DWS Group, citing Harris' recent economic proposals and her record as a U.S. senator and California attorney general.
A higher tax rate would help reduce the U.S. budget deficit by $1 trillion over the next decade, according to the nonpartisan Committee for a Responsible Federal Budget, addressing an issue that has worried some investors. Harris' tax proposal could face serious obstacles in a Congress that is divided or under Republican control.
Harris also is pushing to lower healthcare costs, with analysts expecting she could expand negotiating powers over prescription drug prices enacted during the Biden administration. That could offer relief to shares of solar companies, which have faced headwinds from elevated U.S. interest rates, Lip said. The Invesco Solar ETF is down over 20% this year.Japan takes down giant black screen blocking view of Mount Fuji ahead of Typhoon Ampil