The stock market is set to open tomorrow amid significant news regarding President Joe Biden’s potential withdrawal from the reelection race, which is expected to cause increased volatility.
An upcoming partnership between Uber’s delivery service and Darden Restaurants has boosted Darden’s stock performance, reflecting positive market movement.
As the political landscape shifts, economic uncertainty may take center stage, prompting Democrats to rally behind a new candidate; notably, Biden has endorsed Vice President Kamala Harris as the preferred nominee.
Josh Thompson, CEO of Impact Health USA, commented on the situation, stating that the market is likely to react with volatility and uncertainty if Biden announces his exit from the race. “Investors generally prefer stability and predictability, and such a significant political shift would disrupt both,” he explained.
This uncertainty could lead investors to seek refuge in safe-haven assets, including gold, silver, and the Swiss franc, which tend to be less affected by political and economic turmoil.
Additionally, the “Trump Trade,” which has gained momentum following Donald Trump’s recent debate performance and other events, may experience a slowdown. The Trump Trade encapsulates the market behaviors related to expectations surrounding a potential second Trump administration. During his presidency, Trump was favorable toward business interests, with industries such as healthcare, banking, cryptocurrency, oil, Tesla, and Trump Media and Technology Group anticipated to benefit from another term.
Ed Mills, a policy analyst at Raymond James, noted that while Biden’s potential exit could stall the recent “Trump trade,” it may not lead to a broader market reaction. Current electoral odds are still estimated at 60% for Trump versus 40% for Biden or other Democrats. Will Gavin contributed to this report.