The stock market is set to experience significant movement following the news that President Joe Biden will not seek reelection, likely leading to increased volatility.
Medicare patients are projected to save approximately $1.5 billion across ten prescription drugs.
The announcement of Biden’s withdrawal raises economic uncertainty, prompting Democrats to rally around a new candidate, with Biden endorsing Vice President Kamala Harris as the nominee.
Josh Thompson, CEO of Impact Health USA, noted that if Biden were to step down, markets would likely react with volatility and uncertainty. He emphasized that investors typically favor stability, and such a major political change could disrupt that stability.
This uncertainty may lead investors to seek shelter in safe-haven assets like gold, silver, and the Swiss franc, which tend to be less affected by political and economic shifts.
Additionally, there may be a slowdown in the so-called “Trump Trade,” which has gained momentum since Donald Trump, the former president and current Republican nominee, surpassed Biden in a recent debate and survived an assassination attempt.
The “Trump Trade” reflects how the market responds to the prospect of another Trump presidency. During his first term, Trump was seen as favorable to business interests, benefiting sectors such as healthcare, banking, cryptocurrency, and oil stocks, as well as companies like Tesla and Trump Media and Technology Group.
Ed Mills, a Washington policy analyst at Raymond James, indicated that while the recent developments could lead to a reassessment of the electoral landscape, they do not foresee a significant broader market reaction, maintaining current electoral odds at 60% Trump versus 40% Biden or another Democrat.