The stock market is set to react tomorrow to the news that President Joe Biden has decided not to seek reelection, leading to anticipated volatility in trading.
A recent Coinbase poll indicates that Donald Trump and Kamala Harris are closely competing for the support of cryptocurrency voters.
Biden’s announcement has prompted discussions about economic uncertainty, as Democrats work to rally support around a new candidate, with Biden endorsing Vice President Kamala Harris as his preferred successor.
Josh Thompson, CEO of Impact Health USA, noted that a decision from Biden to withdraw could lead to market volatility. He emphasized that investors typically favor stability and predictability, and such a significant political change could disrupt these aspects.
In response to this uncertainty, investors might shift their focus toward safe-haven assets like gold, silver, and the Swiss franc, which are less affected by political and economic turbulence.
There is also the potential for a slowdown in the “Trump Trade,” which has gained traction since the former president outperformed Biden in debates and survived an assassination attempt. This term describes market behaviors as investors react to the prospect of a second Trump administration.
During his presidency, Trump was viewed favorably by many business interests, and if he were to return to office, sectors such as healthcare, banking, cryptocurrency, oil, and companies like Tesla could see significant benefits.
However, Ed Mills, a Washington policy analyst at Raymond James, indicated that despite any changes resulting from Biden’s withdrawal, their electoral odds would remain largely unchanged, estimating a 60% chance for Trump versus 40% for either Biden or another Democrat. He expressed that any possible slowdown in the “Trump trade” would not lead to a broader market reaction.