"The Trump Trade" cools down, electric vehicle and photovoltaic stocks soar, while oil stocks decline

President Biden announced his withdrawal from the election and endorsed Vice President Harris as the presidential candidate, prompting investors to recalibrate their investment decisions. On Monday, July 22, Eastern Time, stocks benefiting from a "Democratic victory," such as renewable energy, solar energy companies, electric car manufacturers, and cannabis stocks, began to rise, while "Trump trades" such as oil and natural gas, financial, and healthcare stocks began to cool off. In response to this, Jaret Seiberg from Cowen stated: "Biden's decision to withdraw from the presidential race has essentially reset the entire election landscape, reducing the certainty of Trump's victory, increasing risks in the financial markets and cryptocurrency markets, but potentially benefiting the real estate market." Due to the Democratic Party's support for renewable and green energy sectors, and the Biden administration's strong promotion of electrification in transportation, while Trump claims he will completely reverse Biden's electric vehicle policy, overnight on Monday, solar stocks and electric vehicle concept stocks generally rose. 1) In solar stocks: Daqo New Energy ADR rose by 13.6%, leading the pack, First Solar rose by over 4.1% intraday, Atlantica Solar ADR rose by over 4%, Maxeon Solar Technologies rose by over 8%, Sunrun rose by over 5.1% intraday, SunPower rose by over 11.6%, Enphase Energy rose by over 3.4% early in the session, Plug Power rose by over 2% early in the session, and Invesco Solar ETF rose by over 1.1% intraday. 2) In electric vehicle concept stocks: Tesla rose by over 5.1% intraday, Rivian rose by over 4%, Lucid Group rose by over 3.7%, charging network operator ChargePoint Holdings rose by over 3%, Beam Global rose by over 2.7%, Blink Charging rose by over 2% early in the session, XPeng rose by over 6.9%, Nio rose by over 5%, ZEEKR rose by over 4.3%, Li Auto's gains expanded by over 4.4% at one point. Furthermore, due to the Democratic Party's friendly attitude towards the cannabis industry, cannabis stocks have also attracted attention. Meanwhile, oil stocks are declining: Chevron fell by over 1.2% intraday, Exxon Mobil's decline expanded by over 1.2%, ConocoPhillips fell by over 1.8%. Harris is seen as a more aggressive "opponent" to the oil industry than Biden Vice President Harris demonstrated her strong stance on environmental protection during her tenure as California Attorney General. She has sued multiple fossil fuel companies, filed lawsuits over oil spills against a pipeline company, and launched an investigation into whether Exxon Mobil misled the public on climate change. Analysts point out that Harris is explicitly against offshore drilling and hydraulic fracturing. If she becomes president, she may adopt more aggressive environmental policies than Biden, strengthening regulation on oil companies and other polluting enterprises. Democratic Congressman Jared Huffman stated in an interview: "She is the kind of leader who will hold the fossil fuel industry accountable, which is exactly what we need right now. She will definitely continue and expand the Biden administration's success in climate and clean energy." Analysts and environmental advocates believe that Harris has a more aggressive stance on fossil fuel development than Biden. For example, Biden temporarily halted offshore oil leasing sales in his first week in office, but he did not fully fulfill his campaign promise to completely ban new oil and gas permits on public lands and waters. Harris may take stricter measures, such as a complete ban on new oil and gas permits, and implement more environmental regulations to further restrict fossil fuel development. Harris's policies could have a significant impact on the oil and gas industry, potentially leading these companies to face stricter regulations and higher operating costs. Under Harris's leadership, renewable energy and clean energy projects may receive more support and investment to accelerate the transition to a low-carbon economy