We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
On Jul 22, 2024, U.S. tech stocks surged following President Joe Biden's withdrawal from the presidential race, with the S&P 500 and Nasdaq Composite rising over 1% and 1.6%, respectively. This recovery came on the heels of considerable losses the previous week amid a rotation out of large-cap names when “Trump Trade” took place.
However, this week, NVIDIA (NVDA - Free Report) has led a tech recovery, with the sector gaining more than 4.5%. The artificial intelligence (AI) rally seems to be gaining momentum all over again.
Presidential Hopeful Harris to Boost AI Stocks?
Following Biden's endorsement of Vice President Kamala Harris as the Democratic nominee, Democratic leaders rallied around Harris, including endorsements from figures like Nancy Pelosi.
Harris, known for her involvement in AI policy, could bring increased focus on technology issues if elected, building on initiatives like the government's AI executive order. Her Silicon Valley connections and endorsements suggest strong support from tech circles.
Before entering politics, Harris was San Francisco’s first female district attorney and later, she became California’s first female attorney general, the Los Angeles Times reported. During her career as a prosecutor, Harris launched a data transparency project called OpenJustice. In 2016, Harris was elected to the U.S. Senate where she announced a bill called the Digital Service Act.
Market Reaction to Harris’ Presidential Hopefulness
Some of the so-called Trump trades backtracked slightly Monday. The Treasury yield curve flattened and the dollar dropped. Tech stocks rallied. Investors should note that the AI rally has been one of the most notable developments amid the Biden-Harris leadership. So, if Harris runs the presidential election now and manages to show considerable chances of winning, the AI rally should continue.
ETFs in Focus
The most notable winner is likely to be “Magnificent Seven,” which includes Apple, Microsoft, Alphabet, Meta, Amazon, NVIDIA and Tesla. We expect the section to fare better in the coming days as a likely low-rate environment is beneficial for high-growth tech stocks, too. Roundhill Magnificent Seven ETF (MAGS - Free Report) is a likely winner if the AI rally continues (read: ETFs That Gained on Mag 7's Worst Day in a Year).
With AI technology rapidly advancing and becoming increasingly integral to various industries, investors must be looking for ways to capitalize on this trend. Hence, apart from MAGS, investors can keep a close tab on ETFs like Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) , iShares Robotics And Artificial Intelligence Multisector ETF (IRBO - Free Report) , First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT - Free Report) and Themes Generative Artificial Intelligence ETF (WISE - Free Report) .
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
AI Stocks & ETFs to Rally on Likely Harris Trade?
On Jul 22, 2024, U.S. tech stocks surged following President Joe Biden's withdrawal from the presidential race, with the S&P 500 and Nasdaq Composite rising over 1% and 1.6%, respectively. This recovery came on the heels of considerable losses the previous week amid a rotation out of large-cap names when “Trump Trade” took place.
However, this week, NVIDIA (NVDA - Free Report) has led a tech recovery, with the sector gaining more than 4.5%. The artificial intelligence (AI) rally seems to be gaining momentum all over again.
Presidential Hopeful Harris to Boost AI Stocks?
Following Biden's endorsement of Vice President Kamala Harris as the Democratic nominee, Democratic leaders rallied around Harris, including endorsements from figures like Nancy Pelosi.
Harris, known for her involvement in AI policy, could bring increased focus on technology issues if elected, building on initiatives like the government's AI executive order. Her Silicon Valley connections and endorsements suggest strong support from tech circles.
Before entering politics, Harris was San Francisco’s first female district attorney and later, she became California’s first female attorney general, the Los Angeles Times reported. During her career as a prosecutor, Harris launched a data transparency project called OpenJustice. In 2016, Harris was elected to the U.S. Senate where she announced a bill called the Digital Service Act.
Market Reaction to Harris’ Presidential Hopefulness
Some of the so-called Trump trades backtracked slightly Monday. The Treasury yield curve flattened and the dollar dropped. Tech stocks rallied. Investors should note that the AI rally has been one of the most notable developments amid the Biden-Harris leadership. So, if Harris runs the presidential election now and manages to show considerable chances of winning, the AI rally should continue.
ETFs in Focus
The most notable winner is likely to be “Magnificent Seven,” which includes Apple, Microsoft, Alphabet, Meta, Amazon, NVIDIA and Tesla. We expect the section to fare better in the coming days as a likely low-rate environment is beneficial for high-growth tech stocks, too. Roundhill Magnificent Seven ETF (MAGS - Free Report) is a likely winner if the AI rally continues (read: ETFs That Gained on Mag 7's Worst Day in a Year).
With AI technology rapidly advancing and becoming increasingly integral to various industries, investors must be looking for ways to capitalize on this trend. Hence, apart from MAGS, investors can keep a close tab on ETFs like Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) , iShares Robotics And Artificial Intelligence Multisector ETF (IRBO - Free Report) , First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT - Free Report) and Themes Generative Artificial Intelligence ETF (WISE - Free Report) .