Some of the Trump trade in the bond market had already started to subside last week, as investors turned their attention back toward economic data and the Fed. (Photo: Bloomberg)
By Liz Capo McCormick and Natalia Kniazhevich
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.
“This means more uncertainty,” said Gene Munster,…
