US stock markets showed resilience and recorded gains on Monday following the surprise announcement of President Joe Biden’s withdrawal from the presidential race and his endorsement of Vice President Kamala Harris’s candidacy. Investors reacted cautiously but optimistically, assessing the potential implications of Biden’s decision on the upcoming US elections.
As of midday, major indices reflected mixed sentiment but overall positive movement. The Dow Jones Industrial Average was marginally down by 0.95 points at 40,286.58, the S&P 500 rose 28.28 points, or 0.51%, to 5,533.28, and the Nasdaq Composite gained 130.89 points, or 0.74%, reaching 17,857.83.
Earlier in the trading session, the Dow Jones climbed 145.49 points to 40,433.02, the S&P 500 advanced by 47.57 points to 5,552.57, and the Nasdaq Composite surged 218.04 points to 17,944.98 at 9:37 a.m. ET. The market opened with further gains, with the Dow rising 126.96 points to 40,414.49, the S&P 500 up 39.54 points at 5,544.54, and the Nasdaq Composite adding 196.71 points to 17,923.65.
Big Tech stocks, including Alphabet, Microsoft, Apple, and Tesla, rebounded significantly after experiencing losses last week in response to Biden’s announcement. These stocks rose between 1% and 4.2%, contributing to the positive sentiment across the tech sector.
However, not all sectors saw gains. Verizon Communications fell sharply by 6.1% following disappointing second-quarter revenue figures, while cybersecurity firm CrowdStrike slumped 12.9% due to technical issues stemming from a recent software update.
In political and market-related movements, Trump-linked stocks exhibited mixed performance, with Trump Media & Technology Group slipping 0.2%, contrasting with software firm Phunware’s 0.6% rise.
Meanwhile, in the bond market, the yield on the 10-year Treasury slightly eased to 4.22% from 4.24% late Friday, while the 2-year yield remained steady at 4.52%.
Oil prices experienced declines in response to Biden’s political maneuver, with Brent crude futures dropping 68 cents to $81.95 per barrel, and US West Texas Intermediate crude futures decreasing by 69 cents to $79.44.
Gold prices, on the other hand, remained steady as traders assessed the potential electoral implications following Biden’s exit from the race. Spot bullion traded near $2,400 per ounce, stabilizing after earlier fluctuations.
The day’s market movements reflect ongoing investor vigilance and adaptation to evolving political dynamics, with a keen focus on upcoming economic data and corporate earnings reports as indicators of future market direction.
As trading continues, market participants will closely monitor developments surrounding the US presidential race, anticipating further impact on market sentiment and sector-specific performance in the days ahead.
