The stock market is set to experience considerable volatility as it opens tomorrow following President Joe Biden’s announcement that he will not seek reelection. His decision is anticipated to create economic uncertainty, prompting Democrats to rally behind a new candidate, with Biden endorsing Vice President Kamala Harris to take the lead.
Josh Thompson, CEO of Impact Health USA, remarked that Biden’s withdrawal could lead to immediate market fluctuations. “Investors generally prefer stability and predictability, and such a significant political shift would disrupt both,” he stated.
In response to this uncertainty, investors may turn to safer assets like gold, silver, and the Swiss franc, which tend to be less affected by political and economic turmoil.
Additionally, the “Trump Trade,” which refers to market behaviors influenced by former President Donald Trump’s potential return to the White House, could face a slowdown. This trade gained traction after Trump’s strong debate performance against Biden and his recent brush with an assassination attempt.
Ed Mills, a Washington policy analyst at Raymond James, indicated that while the market might reassess the electoral landscape, any immediate change in electoral odds is unlikely to follow Biden’s exit from the race. He noted, “We do not see a broader market reaction.”