The stock market is poised for a turbulent opening tomorrow following the announcement that President Joe Biden will not seek reelection. This decision is expected to heighten volatility in the markets.
According to a recent Coinbase poll, Donald Trump and Vice President Kamala Harris are in a tight race for support among cryptocurrency voters. Biden’s withdrawal is likely to center economic uncertainty as Democrats rally to support a new candidate, with Biden endorsing Harris for the nomination.
Josh Thompson, CEO of Impact Health USA, noted that such a significant political shift would likely result in immediate market volatility. Investors typically favor stability, making the landscape uncertain under these circumstances.
In the face of this uncertainty, investors might turn to safe-haven assets like gold, silver, and the Swiss franc, which generally remain stable during political and economic upheavals.
This situation could also stall the “Trump Trade,” a term used to describe market behaviors reacting to the possibility of a second Trump administration. Despite previous challenges, Trump maintained a pro-business stance during his presidency, benefiting sectors like healthcare, banking, cryptocurrency, and oil, as well as companies like Tesla and Trump Media and Technology Group.
Raymond James Washington policy analyst Ed Mills indicated that while they would keep the electoral odds at 60% for Trump and 40% for a Democratic challenger, a reevaluation of the election landscape might pause the recent momentum in the market associated with Trump. However, he does not foresee a significant overall market reaction.