Biden Ends Campaign, Endorses Harris: Political Shake-Up Sends Markets into Uncertainty

Infotrading.io - In a historic and unforeseen move, President Joe Biden has ended his presidential campaign, creating unprecedented chaos in the 2024 election. This dramatic decision comes after a disastrous debate performance that intensified concerns about his capability to serve a second term.

President Biden announced his decision via a letter posted on his campaign's Twitter account. He assured the nation that he would continue to fulfill his presidential duties until his term ends in January and promised to address the public later this week with more details about his decision. Notably, Biden has endorsed Vice President Kamala Harris to be the Democratic nominee, expressing full support for her candidacy.

Currently recovering from COVID-19 in Delaware, Biden's decision marks a response to mounting pressures from allies and financial backers who were increasingly vocal about their concerns. Speaker Emerita Nancy Pelosi and other influential figures, including financial world leaders, played pivotal roles in urging Biden to step aside, with threats to withhold future donations adding weight to their demands.

Senate Majority Leader Chuck Schumer praised Biden's difficult decision, highlighting his dedication to the country, party, and future. Prominent donor George Clooney, who has been a significant financial supporter, openly expressed concerns about Biden's declining health, further intensifying calls for his withdrawal.

Despite attempts to maintain his campaign, including a firm stance in a Monday interview with NBC News, Biden hinted at potential withdrawal in a BET interview if a medical condition arose. Following a COVID-19 diagnosis and subsequent self-isolation, the chorus of voices urging him to step aside grew louder, with notable political figures like Rep. Adam Schiff and Sen. Jon Tester joining the call.

Biden's decision thrusts the 2024 election into a state of flux, with Vice President Harris emerging as the frontrunner. However, the release of Biden's delegates opens the field for other Democratic contenders, including governors Josh Shapiro, Gretchen Whitmer, and Gavin Newsom.

The immediate aftermath of Biden’s debate performance saw financial and political analysts scrambling to assess the potential impact on markets. With Biden’s endorsement of Harris, a fast-moving and potentially tumultuous selection process is expected, which could rattle markets and shape the political landscape in the coming weeks.

Raymond James Washington policy analyst Ed Mills highlighted the importance of any new candidate’s ability to shift the focus to Trump and his unfavorable record. The Democratic National Convention, set to begin on Aug. 19 in Chicago, looms large, with a new law in Ohio requiring parties to certify their presidential tickets by Aug. 7, adding urgency to the selection process.

The selected candidate will need to swiftly adopt Biden’s platform and counter former President Donald Trump, who has already benefited from a surge in donations. This candidate will also face the challenge of addressing economic issues, particularly inflation, which has been a focal point of Republican criticism.

At the recent Republican National Convention in Milwaukee, speakers hammered the Biden administration over inflation, emphasizing the rising costs of groceries and gas. The new Democratic candidate will need to craft a compelling message to sway voters concerned about economic issues and regain momentum in the race against Trump.