The stock market is set to open tomorrow in response to President Joe Biden’s announcement that he will not seek reelection, which is likely to lead to increased volatility.
Microsoft has shifted responsibility for the recent global IT outage onto Delta Airlines, sparking discussions regarding accountability.
Biden’s decision is expected to intensify economic uncertainty, prompting Democrats to rally behind a new candidate, with Biden endorsing Vice President Kamala Harris as the potential nominee.
Josh Thompson, CEO of Impact Health USA, commented on the anticipated market impact, stating that Biden’s withdrawal would likely result in initial volatility and uncertainty, as investors typically favor stability in political environments.
This uncertainty may drive investors toward safer assets such as gold, silver, and the Swiss franc, which tend to be less vulnerable to political and economic turmoil.
There is also the potential for a slowdown in the “Trump Trade,” which has been gaining traction since former President Donald Trump outperformed Biden in a debate and survived an assassination attempt. The Trump Trade reflects market behavior influenced by the prospect of a second Trump administration. During his presidency, Trump was seen as favorable to business interests, benefiting sectors such as healthcare, banking, cryptocurrency, oil, and companies like Tesla and Trump Media and Technology Group.
Ed Mills, a policy analyst at Raymond James, noted that while Biden’s exit from the race may lead to a reassessment of the electoral landscape, they do not foresee a major market upheaval.