Strategist: Biden's withdrawal may bring volatility, but interest rate cut expectations remain the main driver

ChainCatcher news, Quilter Investors' investment strategist Lindsay James stated that President Biden's withdrawal from the presidential race and support for Kamala Harris reduces the likelihood of a Trump landslide victory, and the market may experience some volatility in the next four months.

However, she wrote in a research report that, compared to election news, interest rate cut expectations will still be the driving factor for market returns. She added that the market is increasingly pricing in a Trump victory, with small companies being buoyed by widespread expectations of import tariffs.