In a turn of events over the weekend, President Joe Biden has withdrawn from his 2024 re-election campaign, endorsing Vice President Kamala Harris as the potential Democratic nominee. To explore the potential impact on financial markets, Rice University Professor of History and presidential historian Douglas Brinkley joins Catalysts.

Brinkley, the author of JFK: A Vision for America and The Nixon Tapes, draws parallels to the last time a president abandoned a re-election bid: Lyndon B. Johnson in 1968.

"Things started getting strange" after Johnson's decision, with the following months marked by a "crazy political see-saw," Brinkley explained. This period saw assassinations of major political figures and violent protests, leading Brinkley to characterize 1968 as "the year of instability" for markets (^DJI, ^IXIC, ^GSPC).

However, Brinkley suggests that in the current climate, former President Trump's running mate, Senator JD Vance (R-Oh.), "draw[s] the most concern" for financial markets. He describes Vance as "a right-wing populist who criticizes corporate America," adding that Vance "wants to attack Wall Street as ripping off the little guy".

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Angel Smith