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Bernie Sanders has seized his wins in Iowa and New Hampshire in the presidential race indicating a strong start to the national elections ahead this year. However, the markets have preferred to neglect his wins and continue to be on the rising momentum ahead. Dow Futures are moving up.
The Dow Futures have rallied to a new high 29, 270 despite Bernie Sanders winning the Democratic Primary from the New Hampshire. The Dow Futures broke 45 points northwards soon as the news broke out despite the fact that Sanders is not pro-market.
The political environment in the United States is catching up the heat with the U.S. Presidential Elections scheduled later this year in November 2020. Current President Donald Trump is confidently looking ahead for another term at the office. While Bernie Sanders is a strong contender from the Democratic Party standing as an opposition to President Trump.
Sanders’ political premise has been more about attacking the financial establishment. In the recent past, he has also spoken staunchly on introducing higher taxes for ultra-rich individuals and corporations.
On the other hand, President Donald Trump’s policies have been more market and business-friendly. The U.S. stock market indices have been on a record surge during his tenure in the last four years. Now, if Bernie’s campaign gathers momentum, it is likely to put a brake on this rapidly surging stock market.
Wall Street Confident of Donald Trump’s Win
Wall Street has pinned its hope that President Trump is likely yo return to power again for his second term at the office. This has pretty much got the markets going higher despite repeated suggestions by analysts of an impending U.S. economic recession.
Well, the recent wins of Bernie Sanders are likely to get investors scratching their heads and work out on alternate safeguard measures if at all Trump loses this election. Yet another win by a Democratic Partyman can put a break to this fastly rising market.
On the other hand, the Trump administration is currently facing roadblocks in phase one deal with China due to the outbreak of the coronavirus. Federal Reserve Chairman Jerome Powell recently said that the U.S. Economy can feel the heat of the coronavirus outbreak in China.
‘We are closely monitoring the emergence of the coronavirus, which could lead to disruptions in China that spill over to the rest of the global economy,’ said the Fed’s Powell in his first public testimony since the #coronavirus outbreak https://t.co/vJ5ug7WbeW pic.twitter.com/jDlfivAWas
— Reuters Business (@ReutersBiz) February 12, 2020
The agreed agricultural purchases of over $80 billion seen to be under threat. Moreover, Dow Jones can really see volatility if China fails to keep its side of the bargain. As the uncertainty brews, the world is waiting on the sidelines for things to come back to normalcy in China which can bring some stability back in the market.