NEW YORK (Reuters) – U.S. President Joe Biden ended his re-election campaign on Sunday after fellow Democrats lost faith in his mental acuity and ability to defeat Donald Trump, leaving the presidential race in uncharted territory .

Here are comments from investors:

DAVID WAGNER, PORTFOLIO MANAGER AT APTUS CAPITAL ADVISORS LLC, FAIRHOPE, ALABAMA:

“We may see a bit of a reversal of what has worked in the market over the past couple of weeks, with the smaller-cap stocks running, but by no means would I expect the market to give up all those gains.

“The biggest event for the market will be who is on the Democratic ticket because their policies and ideas about regulation will have the most impact.

“Biden endorsed Harris, but I think there’s going to be a lot of cooks in the kitchen over the next couple of weeks vying for the position — I think it’s wide open.”

GUY LEBAS, CHIEF FIXED INCOME Strategist, JANNEY MONTGOMERY SCOTT:

“It’s unclear at this point how Biden’s resignation will affect markets. In large part, that’s because we don’t know much about how a Harris administration will differ from a Biden 2.0 administration in terms of economic policy.”

ELLIS PHIFER, MARKET Strategist, RAYMOND JAMES:

“I think any time you create this kind of change it creates uncertainty.

“This could be taken negatively in terms of higher deficits. In my opinion, we have two fiscally irresponsible parties.

“Tomorrow, I think it’s going to end up with bond buying probably on the downside.”

ART HOGAN, CHIEF MARKET STRATEGIST, B. RILEY WEALTH:

“Regarding the ‘Trump trade’, I would suggest that the Trump trade is indistinguishable from a significant mean reversion in small caps based on a potential Fed rate cut in September and bonds seeing a significant decline in yields.

“Of course, we will have to wait until Monday, but my gut tells me that this is less of a surprise for the markets, which have been a remarkably effective forward pricing mechanism.”

QUINCY KROSBY, CHIEF GLOBAL STRATEGIST, LPL FINANCIAL, CHARLOTTE, NORTH CAROLINA:

“That was to be expected. It was really a matter of not if but when, and now the next stage is who will it be. The question is does his support apply to Vice President Harris? Obviously Vice President would be the easiest path. But there have been so many comments from top Democrats who sought a more open process for a nominee.

MARC OSTWALD, CHIEF ECONOMIST & GLOBAL STRATEGIST, ADM INVESTOR SERVICES, LONDON:

“I think it helps to remind people that – and this is probably the most important point – how does this change the perspective on voting in Congress? Because it was very likely that the Republican would get a clean sweep, simply because a lot of people would say ‘if that’s all (Democrats) have to offer, then no thanks and let’s give it all to the Republicans and Trump.’

“That might change that particular outlook. Both races are going to be close, there’s no question about that. But this is actually very important for the outlook for the U.S. dollar, for the U.S. deficit, because it’s legislation and passing legislation.”

BILL STRAZZULLO, CHIEF MARKETS Strategist, BELL CURVE TRADING, BOSTON:

“It looks like Kamala Harris is going to be the Democratic nominee, a former prosecutor against somebody who has 34 felony convictions. It’s fantastic. It’s great for the country because to me all things were going through the market — possible slowdown in the economy, persistent inflation, the questions about what the Fed is going to do — all of that pales in comparison to the damage of a second Trump administration, whether it’s his crazy economic policies, tariffs, abandoning Ukraine, and how destabilizing it would be that in Europe.

“He has no interest in defending Taiwan. I mean the economy, the markets and the world will go into complete chaos with him.”

James Koutoulas, CEO of HEDGE FUND TYPHON CAPITAL MANAGEMENT:

“I think you’re going to see a little bit more volatility just because it adds uncertainty. Trump is still a very strong favorite to win, but Biden has been so awful, any replacement has a slightly better chance of beating him.”

MICHAEL BROWN, SENIOR MARKET ANALYST, PEPPERSTONE, LONDON:

“I would imagine that we will see a risk-on movement, purely as a result of this increased uncertainty. In general, we are still four months away from the election. So perhaps one of the biggest steps is that people will start thinking about the election a lot earlier than we’ve seen in previous political cycles.”

GENNADIY GOLDBERG, INTEREST STRATEGIST, TD SECURITIES, NEW YORK

“Much will depend on who the party nominates as its vice presidential nominee (assuming Harris is the choice to replace Biden.)

“Kamala Harris may not fare better than Biden. At the moment nothing is certain.

“The next few hours will help determine how the market opens. I suspect (the Treasury curve) will be steep. But if it looks like the expected ticket is enough to actually beat Trump, that could be a really good thing.” for the returns.”

MATTHEW GOTLIN, INVESTMENT ADVISOR & MANAGING ADVISOR, WEALTH MANAGEMENT, CHOREO, MARYLAND:

“Markets tend to hate uncertainty. You’d certainly expect more short-term volatility in November, especially as we wait to see who the Democratic nominee will be.

“An election is a very emotional thing, but in the markets, things like earnings will matter more in the long run.”

RICK MECKLER, PARTNER, CHERRY LANE INVESTMENTS, NEW VERNON, NEW JERSEY:

“It was certainly something that was already embedded in the minds of investors. It does, however, represent a huge amount of uncertainty both in terms of who the nominee is going to be, although it’s likely to be the Vice President.

“Certainly if it’s the Vice President, it probably reflects the continuation of current Democratic economic policies and so it doesn’t change much in terms of investor views and how the market is going to react and what it’s likely to face.

“Unpredictability in politics has never been a huge positive for markets, but in this case, because it’s been expected for a while, I don’t think the reaction will be too immediate.”

BRIAN JACOBSEN, CHIEF ECONOMIST, ANNEX WEALTH MANAGEMENT, BROOKFIELD, WI:

“This is a contest once again. If Biden had stayed, the odds would have tilted ever more in favor of not just a Trump win, but a Republican sweep. Now it’s a race again. Trump-Trade will likely get a breath as investors reassess the odds of the outcome.This means small caps, financials, energy and crypto could see a slight retreat, but Trump still has the edge.

JACK MCINTYRE, PORTFOLIO MANAGER, GLOBAL FIXED INCOME, BRANDYWINE GLOBAL INVESTMENT MANAGEMENT:

“I think overall this will be at least temporarily positive for the markets…It will probably be positive for the bond market, especially given exactly where we are in the business cycle and more importantly, where we are growth-wise. inflation.

“I suspect if that pushes us toward divided government, that’s a positive for the market.”

JAMIE COX, MANAGING PARTNER, HARRIS FINANCIAL GROUP, RICHMOND, VA:

“The question of who the candidate will be will re-enter the minds of investors in a very big way.”

“Markets will be wildly volatile until the Democratic nominee is known. This will likely play out through the dollar, creating volatility in fixed income and equities.”

GINA BOLVIN, CHAIRMAN OF BOLVIN WEALTH MANAGEMENT GROUP

“Biden’s resignation is a whole new level of political uncertainty. This could be the catalyst for overdue market volatility.”

RHONA O’CONNELL, HEAD OF MARKET ANALYSIS – EMEA & ASIA – STONEX, LONDON:

“My gut reaction is that everything in the short term remains up in the air, obviously against the Democratic nomination. But it may well put the brakes on the Trump locomotive.

“In terms of risk – the tailwinds are stronger for gold, purely on this basis, than the headwinds. Some uncertainty has been removed, by definition, as noted above.”

“At least it shows a stronger opposition, which every democracy should aspire to.”