There have been recent polling shifts within the US elections and according to investment firms Piper Sandler and Gavekal Research, these shifts suggest that markets may be preparing for the possibility of a Trump victory as the polls show a 52% to 48% in favour of Trump.

They have noted moves in financial markets, with some indicators reflecting growing investor sentiment favouring Trump.

Piper Sandler said, a "small shift in the polls toward Donald Trump has had an outsized impact on investor response."

Their analysis shows more investors leaning toward the idea of a Trump victory and a potential GOP sweep.

Betting markets are also reflecting this shift, with Piper Sandler noting the Polymarket odds moving to 60-40 in favour of Trump, and PredictIt now showing Trump with a slight lead after being tied just days ago.

The firm said, "The shift in sentiment has resulted in a bid for Trump stocks," with their Trump-themed portfolio outperforming one aligned with Kamala Harris.

The biggest winners from all of this have been GEO Group, while solar and electric vehicle (EV) stocks have taken a hit due to Trumps pro-oil approach.

Gavekal Research waded into this argument with further support, observing that "polls in six of the seven most important swing states" now show Trump with an edge.

Wisconsin is said to be the only one buking the Trump trend. Gavekal suggests that market behaviour in recent days could reflect this potential shift in political outcomes.

They argue that financial markets may be "pricing in a Trump victory, and perhaps even a 'red sweep'" of both the presidency and Congress.

Both firms emphasize that while momentum has tilted toward Trump, the race is still highly uncertain and as we have seen with election polls in the past it’s never over until it’s over.

Source: Investing.com, Fox News