(New York)
Donald Trump wasted no time in highlighting Democrats’ big debacle in the Iowa Caucus. And interestingly, markets wasted no time in jumping on news of the issues in Iowa. In particular, bank stocks jumped across the board (from JPM to BAC and beyond) on news of the reporting issue in Iowa. Investors think a Trump re-election will be better for markets, and bank stocks are particularly sensitive as the current president is viewed as much more favorable to financial companies.
FINSUM: If Bernie ends up winning the Caucus, expect markets to take a little hit, as he (or Warren) will be the exact opposite of “good” for bank stocks.
