A rancourous first TV debate of the U.S. presidential election race saw betting markets increase modestly Democratic challenger Joe Biden's chances of beating incumbent Republican Donald Trump in November's poll - with U.S. stock futures down less than 1% since the debate and the U.S. dollar slightly higher. Financial markets have seen a massive rebound from this year's pandemic shock even as Biden has retained a consistent double-digit advantage since June in many prediction markets such as PredictIt, where Wednesday's gap of 16 points is one of widest in almost 6 weeks. While investors of different political hues argue over the economic impact of either candidate's plans, Goldman Sachs on Tuesday said the running assumption that a Democratic sweep could be negative for Wall St equities was wide of the mark and such an outcome would be slightly beneficial to S&P500 profits through 2024 at least.
Chart by Ritvik Carvalho and commentary by Mike Dolan.
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