The stock market is set to open tomorrow amidst the news that President Joe Biden will not seek reelection, which is likely to bring significant volatility.
Boeing is looking to raise $19 billion as it grapples with delays in deliveries and worker stoppages. This development has raised concerns about economic uncertainty as Democrats move quickly to rally behind a new candidate, with Biden endorsing Vice President Kamala Harris for the nomination.
Josh Thompson, CEO of Impact Health USA, expressed to Yahoo Finance that if President Biden withdraws from the race, it would likely lead to immediate market volatility and uncertainty. Investors typically favor stability, and such a major political change would disrupt that norm.
This uncertainty could drive investors towards safe-haven assets like gold, silver, and the Swiss franc, which tend to be more stable during turbulent political and economic times.
Additionally, the “Trump Trade,” which has gained momentum since former President Donald Trump performed well in a debate against Biden and survived an assassination attempt, may also experience a slowdown. This term refers to market behaviors influenced by the prospect of a second Trump administration, which has been viewed as favorable for several sectors, including healthcare, banking, cryptocurrency, and oil stocks, along with firms like Tesla and Trump Media and Technology Group.
Analysts at Raymond James, including Washington policy analyst Ed Mills, have indicated that while a withdrawal by Biden might pause the recent momentum of the “Trump Trade,” they do not foresee a significant overall market reaction. Currently, they maintain electoral odds at 60% favoring Trump against 40% for Biden or another Democrat.