Stock market futures rise after Biden exits race, uncertainty remains.

From Dow Jones & Company: 2024-07-21 19:27:00

U.S. stocks are set to open higher on Monday following President Biden’s decision not to seek reelection and endorse Vice President Kamala Harris for the Democratic presidential candidate. Dow Jones futures rose 0.1%, S&P 500 futures increased 0.2%, and Nasdaq futures were up by 0.3%. The market has been reacting to the “Trump trade” and uncertainty surrounding Biden’s departure.

Investors are focusing on potential policy changes and the implications of a Trump win in the upcoming election. The market is uncertain about the future nominee and their ability to beat Trump. Morgan Stanley strategist Michael Zezas believes policy uncertainty is minimal, but investors need to watch for Trump trade impacts, especially related to banking stocks.

With futures trending upward, it appears Biden’s exit may not disrupt Trump’s momentum or his promised tax cuts and deregulation. Analysts predict a slightly lower chance of Trump beating Harris compared to Biden. The market is experiencing increased volatility with the VIX rising in the face of heightened political uncertainty. Market experts are divided on whether Biden stepping down will trigger overdue market volatility.



Read more at Dow Jones & Company: Stock Market Futures Climb After Biden Quits Race. Here’s What to Watch Next.