Investors react to U.S. President Joe Biden exiting the Presidential Race

Investors react to Biden exiting the Presidential Race

21 July, 2024  -  U.S. President Joe Biden ended his reelection campaign on Sunday after fellow Democrats questioned his mental acuity and ability to defeat Donald Trump, creating uncertainty in the presidential race.

What could be the potential impact on the financial markets?

The market might see a shift from the trends of the past two weeks, with smaller capitalization stocks potentially experiencing gains. However, it's unlikely that the market will reverse all recent gains.

The more significant market influence will come from the new Democratic candidate, as their policies and regulatory ideas will have a more substantial impact. Although Biden has endorsed Harris, there are many contenders for the position, making the race wide open.

It's currently unclear how Biden's withdrawal will impact the markets, primarily because we don't yet know how a Harris administration's economic policies would differ from Biden's.