Biden Exit Puts Trump Trade in Doubt as Election Gets Re-Set

  • Dollar slips, Treasury yields edge lower in wake of decision
  • US clean energy stocks, banks have potential to move at open
WATCH: State Street’s Marija Veitmane discusses the “Trump trade” and why she cautions against a “wholesale rotation” into small caps.Source: Bloomberg
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Investors have been amassing wagers on Donald Trump’s return to the White House for weeks, trimming holdings of long-term US bonds and buying Bitcoin, among other things. Now, they’re considering whether Joe Biden’s exit from the race boosts the odds of a Democrat victory — and how much they must recalibrate their bets.

One thing seems certain after the president dropped his reelection bid: Though the announcement was widely expected as the 81-year-old faced pressure from allies, it injects a wild card into the campaign that will likely translate into volatility for markets.