Biden's withdrawal from presidential race, support for Harris changes market dynamics
Date
7/23/2024 8:06:59 AM
(MENAFN) U.S. President Joe Biden's recent decision to exit the presidential race and endorse Vice President Kamala Harris as the Democratic Party's nominee has led investors and economists to reassess the potential impacts of these developments on various aspects of the economy, including the Stock market and the "Trump trade." Despite the announcement, U.S. markets have remained stable, with both the S&P 500 and the tech-focused nasdaq rising at the close of trading on Monday, which marked the first session of the week and the first trading day after Biden's withdrawal.
According to a CBS report, Wall Street had already anticipated the possibility of Biden stepping down, which helped mitigate immediate market reactions. However, the report also highlighted that investors are cautioning about potential volatility in U.S. markets in the short term, especially if the presidential race becomes more competitive with Harris as the new Democratic candidate.
Before Biden's decision on Sunday, former President Donald Trump had gained a significant advantage in the polls, achieving his largest nationwide lead over Biden at that point in the campaign. This momentum had fueled the "Trump trade," a strategy involving investments in assets and stocks perceived to benefit from a Republican administration, such as crypto-related and energy stocks.
With Biden stepping down, Wall Street is now shifting its focus to the economic policies and views of Harris, who has garnered support from key Democrats to lead the ticket. Investors are carefully evaluating the new political landscape, considering how Harris's positions might influence market trends and economic strategies moving forward.
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