The stock market hasn’t been kind to President Biden.

From 2021 to 2023, the S&P 500—America’s key stock benchmark— soared 17.3%. Meanwhile, Trump’s presidency handed investors a total gain of 67.8%.

Strong markets don’t guarantee re-election (as evident by Trump), but the lower returns have coincided with a drop in Biden’s approval rating lately.

According to Gallup, Biden’s approval rating is down to 42% in August 2023 compared to 57% at the start of his presidency.

If Republicans took over in 2024, sectors showered with trillions of “Biden dollars”—including infrastructure and green energy—could take a blow.

Biden ranks low on the U.S. economy and relations with China

Three problems keep Biden awake at night.

First, consumers are still feeling the pinch of high prices. Core inflation—headline inflation stripped of volatile energy and food prices—remains high at 4.7% in July 2023.

Second, because high prices aren’t giving out, the Fed is committed to raising interest rates, which doesn’t bode well for individuals and businesses.

As borrowing becomes more expensive, businesses’s costs grow. Consumers, meanwhile, have to tighten their belts due to higher credit bills.

For example, if you factor in mortgage costs, housing today is as unaffordable as it was back in 1981.

Third, the U.S. is falling out with China.

Earlier this year, Biden announced a ban on high-tech exports to China. In response, China restricted exports of germanium and gallium—two vital raw materials that go into semiconductors. An eye for an eye.

Why does this matter?

Think of it as a PTSD trigger for Americans. A tit-for-tat trade war is yet another threat to global supply chains—which simply means things could get more expensive.

It's no wonder that Biden's approval ratings for the economy and relations with China scored horribly at 37% and 32%, respectively. (Immigration is last at 31%.)

Infrastructure and clean energy could be the first to take a hit

Biden’s presidency was a godsend to the infrastructure and clean energy sectors.

In 2021, the Biden administration passed a historic $1 trillion infrastructure bill to upgrade roads, bridges, transit systems, and other infrastructure.

Biden also pledged to slash carbon emissions in half by 2030. One of the ways to do that is to increase investments in clean energy such as solar and hydropower.

On that front, American Clean Power reported that several projects worth more than $40 billion qualified for clean energy tax credits.

If the Republicans came into power, these money streams might dwindle to a trickle.

While Republicans don’t oppose infrastructure spending, they do advise prudence in deficits. According to the Pew Research Center, the party also views climate change as a low-priority issue.