The stock market is set to open tomorrow amidst the announcement that President Joe Biden will not seek reelection, leading to anticipated volatility.
A recent Coinbase poll indicates that Donald Trump and Kamala Harris are closely matched among cryptocurrency voters. The absence of Biden opens the door for economic uncertainty as Democrats quickly rally behind a new candidate, with Biden endorsing Vice President Kamala Harris.
Josh Thompson, CEO of Impact Health USA, commented to Yahoo Finance over the weekend that such a pivotal political shift would likely result in market volatility and instability, factors that investors typically shy away from. This situation may drive investors towards safer assets such as gold, silver, and the Swiss franc, which are less susceptible to political and economic fluctuations.
Another outcome could be a slowdown in the so-called “Trump Trade,” which has gained traction following Trump’s strong debate performance against Biden and his recent survival of an assassination attempt. The Trump Trade describes market reactions linked to the potential for a second Trump presidency. Trump, known for his business-friendly policies during his first term, has been beneficial for sectors such as healthcare, banking, cryptocurrency, oil, and companies like Tesla and Trump Media and Technology Group.
Raymond James Washington policy analyst Ed Mills indicated that while the electoral odds might remain unchanged at 60% for Trump compared to 40% for a Biden/Democrat contender, there could be a pause in the recent Trump trade as the market recalibrates its assessment of the election landscape, without a significant overall market reaction expected.
Will Gavin contributed to this article.