U.S. President Joe Biden abruptly withdrew on July 21, 107 days before the November election. It is rare in U.S. history for a sitting president to decline to seek re-election, but one notable precedent is President Lyndon B. Johnson, who chose not to run for re-election in 1968.
This unexpected decision has sent shockwaves through the political landscape, leaving the Democratic Party with the daunting task of selecting a new presidential and vice-presidential candidate in the weeks leading up to its nominating convention. Vice President Kamala Harris and California Governor Gavin Newsom have emerged as top contenders, with the party urgently striving to unite its base and present a cohesive front.
On the Republican side, after the Republican National Convention, former President Donald Trump has intensified his campaign efforts, yielding significant impacts on the financial markets. The past week has witnessed a notable market shift, with the stock market experiencing a decline after a sustained period of growth. Trump's statements about defense spending in Taiwan and potential restrictions on the People's Republic of China have particularly affected semiconductor stocks, causing notable fluctuations.
Some market experts commented on the market's reaction, "The uncertainty surrounding Trump's potential second term, regarding international trade policies, has spooked investors and led to significant volatility in the markets. The risk of increased sanctions on China is particularly concerning for the tech sector."
The Democratic Party's campaign strategy is under heightened scrutiny, as factions within the party call for substantial economic reforms, including increased regulation on Wall Street and robust investment in green technology and infrastructure. This has sparked a broader debate about the future direction of the U.S. economy, with potential candidates proposing varying visions amidst the political turmoil.
Meanwhile, NATO allies have expressed apprehension about Trump's rhetoric, fearing potential strains in transatlantic relations and a reevaluation of U.S. commitments. This has prompted emergency meetings among European Union leaders to discuss defensive strategies, should there be significant policy shifts by the United States post-election.
As the November election approaches, both parties are bracing for increased scrutiny and market volatility. Analysts predict continued uncertainty as investors weigh the potential geopolitical ramifications and the impact of new economic policies. The Democratic National Convention, slated for August, is anticipated to be a pivotal moment, as the party reveals its chosen candidate and strategic vision to rally its constituents and address the nation's challenges in these tumultuous times.
