On Sunday evening, US President Joseph Biden announced his not-so-surprising exit from the 2024 Presidential race, saying it was in “the best interest of [his] party and the country.” He also endorsed Vice President Kamala Harris’s bid to run against the popular former US President Donald Trump, the Republican candidate.
Although Harris is a known political face—she ran with Biden for the Vice President post in 2020 and won—it is still being determined how the markets will react in the coming weeks. Notably, it is not confirmed whether Harris would represent Democrats in the race against Republican Trump. However, Biden’s endorsement has made her the top candidate for the race.
My fellow Democrats, I have decided not to accept the nomination and to focus all my energies on my duties as President for the remainder of my term. My very first decision as the party nominee in 2020 was to pick Kamala Harris as my Vice President. And it’s been the best… pic.twitter.com/x8DnvuImJV
— Joe Biden (@JoeBiden) July 21, 2024
The Uncertainty Looms
Markets do not like instability other than bad policies. In a race between Biden and Trump, the Republican candidate had become a favorite, not only due to his populist moves but also because the sitting President’s health concerns that affected his public appearances.
While Trump is very vocal about his policies regarding corporations and even cryptocurrencies, which have become a hot election topic, Harris’ views remain unknown.
Joe Biden has served our country with honor and dignity.
As the first president to ever walk on a picket line with striking workers, he has been the most pro-working class president in modern American history.
Thank you, Mr. President, for all you’ve done.
— Bernie Sanders (@BernieSanders) July 21, 2024
“I don’t see more upside in the market with Kamala at the top of the ticket, I can’t see the market liking her,” the New York Post quoted an anonymous high-net-worth individual. “She’s not stable.”
Josh Thompson, CEO of Impact Health USA, also told Yahoo Finance that the immediate market reaction to Biden’s stepping down and endorsement of Harris “would likely be one of volatility and uncertainty… Investors generally prefer stability and predictability, and such a significant political shift would disrupt both.”
I believe in an America that maximizes individual freedom and merit.
That used to be the Democratic Party, but now the pendulum has swung to the Republican…
