Strategist: Biden's withdrawal may cause fluctuations, but the expectation of interest rate cuts remains the main driving force

In a message from ChainCatcher, Lindsay James, Investment Strategist at Quilter Investors, stated that President Biden's withdrawal from the U.S. presidential race and his support for Kamala Harris have reduced the likelihood of Trump winning by a landslide. The market may experience some fluctuations in the next four months.

However, she wrote in a research report that compared to election news, expectations of interest rate cuts will still be the driving factor for market returns. She added that the market is pricing higher chances of Trump's victory and small companies are somewhat boosted by expectations of widespread import tariffs.