- U.S. stock market futures fell after Bernie Sanders nomination odds moved above 90% for the first time.
- Sanders was buoyed by the fact That Mike Bloomberg had a historically bad night, as his odds plummeted after an attack from Elizabeth Warren.
- Dow bulls were quick to buy the dip, but Wall Street still looks entirely complacent to the risk of a Sanders victory.
Dow futures fell around (points to 51, 728 Wednesday evening as the Democratic debate in Nevada sparked a violent reaction in betting odds that pushed Bernie Sanders above a 90% chance to win the nomination for the first time. The catalyst for this move was a devastating onslaught against Mike Bloomberg, led by Elizabeth Warren, which sent the former mayors odds crashing.
Dow Futures Tumble As Bernie Sanders Takes Control
The stock market has been confident that Donald Trump will secure reelection for some time . In addition to this, the rise of former New York City Mayor Mike Bloomberg also had Dow bulls hoping that a moderate candidate might stand a chance of winning the Democratic nomination.
Unfortunately, those dreams seem to have imploded as Bernie Sanders delivered a dominant performance in Nevada. At the same time, Bloomberg, making his first appearance in a debate, took heavy blow after heavy blow.
The damage to the billionaire’s prospects was immediately apparent in the betting odds, as a flash crash ensued.
Openly in favor of tackling corporate greed, Sanders wants to tax extreme wealth and reform the US healthcare industry. This makes him public enemy No. 1 for a bubbly Dow Jones pumped up by years of Donald Trump’s deregulation efforts.
Given that Trump was a massive outsider to win the presidency , it seems likely that more risk premium needs to be priced into the Dow Jones if Sanders is on the ballot in November. Several national polls still have him beating Trump in a general election.
Given that the president’s best chance of reelection lies in the continued rise of the Dow, the runaway success of Bernie Sanders might not be as beneficial to him as his campaign believes .
(This article was edited by (Samburaj Das) .
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