Investors are bracing for a potential shakeup in the presidential race following President Joe Biden’s prime-time debate stumble last week. The concern: an unknown quantity atop the Democratic ticket should Biden bow out amid intense pressure from mega-donors and rank-and-file members of Congress.
"It’s very difficult to avoid the fact that President Biden no longer seems viable in this election," 22V Research’s Kim Wallace told me Friday on Morning Brief (video above). "The way forward is contentious for Democrats. Realistically, there is absolutely no way to do this smoothly, but they have work to do and they know it."
For investors who have watched the S&P 500 surge 15% this year, AGF Investments’ Greg Valliere warns a new candidate on the ticket could signal "volatility, instability, you name it" for a market in rally mode.
Potential candidates floated to Yahoo Finance by sources include California Gov. Gavin Newsom, Michigan Gov. Gretchen Whitmer, Pennsylvania Gov. Josh Shapiro, Commerce Secretary Gina Raimondo, and former Secretary of State Hillary Clinton.
Of the names being discussed, Renaissance Macro’s Steve Pavlick told me that Vice President Kamala Harris and Commerce Secretary Gina Raimondo are among the names that may be viewed favorably by a nervous market.