London Daily

Focus on the big picture.
Tuesday, Mar 03, 2026

After four years of Trump, 'Sleepy Joe' sounds just fine to Wall Street

After four years of Trump, 'Sleepy Joe' sounds just fine to Wall Street

During the 2020 campaign, President Donald Trump sought to undercut Joe Biden's popularity by calling him "Sleepy Joe." But on Wall Street, a return to stability and predictability in Washington -- which the industry expects Biden would bring -- would be welcomed.

The chaotic nature of the Trump era has left investors constantly on the edge of their seats. Whether a verbal assault on the Federal Reserve chairman or a sudden decision to lob tariffs on China or an attack on a major American company like General Motors, there hasn't been a dull moment.

If the presidency goes to Biden, a conventional politician with 40 years of experience in Washington, he is expected to govern with the kind of steadiness that investors crave. That could reduce uncertainty for markets, especially in key areas such as trade policy, foreign relations and negotiations with Congress on ways to revive the economy.

"Investors spent the last four years one tweet away from major market moves," said Ed Mills, Washington policy analyst at Raymond James. "That is not Joe Biden's style. Even if there's uncertainty, it will take a longer time to play out and will take a more predictable path."

Wall Street is already preparing for a Biden presidency -- even though the race has not been called by CNN or other major news outlets.

Markets surged through the first four trading days this week as investors celebrated the likelihood of divided government -- gridlock that removes the threat of sweeping legislation such as tax hikes.

"The market is pricing in a split government: a Biden victory and a Republican majority in the Senate," said Mills.

Michael Strobaek, global chief investment officer at Credit Suisse, told clients in a report Friday: "After a short period of uncertainty, we believe Joe Biden has secured a majority of Electoral College votes to become the next US president."

'Palace intrigue'


The Trump era has brought an unprecedented amount of turnover to the executive branch, as the president has had four chiefs of staff in as many years, and constant speculation has swirled about firings of other officials. That is important for investors because federal officials set policy, hence the saying: "personnel is policy."

"We all spent a lot of time on the palace intrigue of who's in and who's out. Who is the president happy with? Who is serving in an acting capacity?" said Isaac Boltansky, director of policy research at Compass Point Research & Trading.

For instance, former Secretary of State Rex Tillerson was famously fired in 2018 over Twitter after 14 months on the job.

"Rex Tillerson feels like four lifetimes ago," said Boltansky. "The reality TV-like cycle, when it came to different advisers and appointees, made it difficult to forecast actual policymaking."

Trump's unpredictable style has kept his political opponents and adversaries off balance. And it has also made it hard for investors to put much weight into what his lieutenants say.

"Hearing from the chief of staff doesn't really matter because he can be overruled in a tweet," said Boltansky.

Is the trade war on or off?


The unpredictable trade war between the United States and China has also caused significant turbulence on Wall Street. Investors were left guessing: Were tariffs were ramping up or down? That environment also made it difficult for Corporate America to determine where to invest overseas and how to manage intricate supply chains.

"When we were in the throes of the tariff wars, we saw significant volatility," said Kristina Hooper, chief market strategist at Invesco. "We'll definitely see a return to a more traditional approach to governance. It could tamp down day-to-day volatility."

Biden would be expected to take a softer tone with Europe on trade. However, he would possibly take a tough stance with China because there is bipartisan support for addressing the Beijing's trade tactics, particularly over the theft of intellectual property. Still, those concerns could be dealt with in a less volatile way.

"There is likely to be an end to unpredictable trade wars and a return to a rules-based system for international relations," ING strategists wrote in a report
Thursday.

'Immune to the tweets'


Eventually, investors became somewhat numb to Trump's sudden tweets, and they have been tuning out all but the most important.

"The stock market almost became immune to the tweets and came to accept that as just part of the current president's governance style," said Hooper.
Boltansky said that investors eventually realized "there was a gap between the rhetoric and the reality."

However, just last month Trump abruptly short-circuited stimulus negotiations via a tweet and within minutes the Dow plummeted by 600 points. Trump reversed himself and spent weeks trying unsuccessfully to get a pre-election stimulus deal.

Although a Biden White House would still bring about uncertainties, it would be unlikely to come close to the chaos of the last four years.
"Investors like when they don't have to worry about DC," said Mills.

Newsletter

Related Articles

0:00
0:00
Close
UK Arrests Prominent Figures Linked to Epstein Network as Questions Mount Over US Action
Trump Says UK ‘Took Far Too Long’ to Approve Use of Airbases for Iran Strikes
Scope of Britain’s Role in the Expanding Middle East Conflict Comes Under Scrutiny
Trump Says He Is ‘Very Disappointed’ in Starmer Over Iran Comments
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Starmer Confronts Strategic Test After Drone Strike Near British Base in Cyprus
Rolls-Royce Chief Signals Openness to Germany Joining UK-Led Fighter Jet Programme
UK Stocks Slip as Escalating Iran Conflict Triggers Global Market Selloff
UK Overhauls Asylum System to Make Refugee Status Temporary
Starmer Warns of ‘Reckless’ Iranian Strikes Amid Escalating Regional Tensions
British Base in Cyprus Targeted as Drones Intercepted Amid Expanding Iran Conflict
Starmer Diverges from Trump on Iran Strategy, Rejects ‘Regime Change from the Skies’
U.S. and Israel Intensify Strikes on Iran as Conflict Expands to Lebanon and Gulf States
Violent Pro-Iranian Protesters Storm U.S. Consulate in Karachi
Missile Debris Sparks Fires at Dubai’s Jebel Ali Port Near Palm Jumeirah
Iran Strikes U.S. Fifth Fleet Headquarters in Bahrain Amid Wider Gulf Retaliation
When the State Replaces the Parent: How Gender Policy Is Redefining Custody and Coercion
Bill Clinton Denies Knowing Woman in Hot Tub Photo During Closed-Door Epstein Deposition
Former U.S. President Bill Clinton Testifies on Ties to Jeffrey Epstein Before Congressional Oversight Committee
Dyson Reaches Settlement in Landmark UK Forced Labour Case
Barclays and Jefferies Shares Fall After UK Mortgage Lender Collapse Rekindles Credit Market Concerns
Play Exploring Donald Trump’s Rise to Power by ‘Lehman Trilogy’ Author to Premiere in the UK
Man Arrested After Churchill Statue Defaced in Central London
Keir Starmer Faces Political Setback as Labour Finishes Third in High-Profile By-Election
UK Assisted Dying Bill Set to Fall Short in Parliament as Regional Initiatives Gain Ground
UK Defence Ministry Clarifies Position After Reports of Imminent Helicopter Contract
Independent Left-Wing Plumber Secures Shock Victory as Greens Surge in UK By-Election
Reform UK Refers Alleged ‘Family Voting’ Incidents in By-Election to Police
United Kingdom Temporarily Withdraws Embassy Staff from Iran Amid Heightened Regional Tensions
UK Government Reaches Framework Agreement on Release of Mandelson Vetting Files
UK Police Contracts With Israeli Surveillance Firms Spark Debate Over Ethics and Oversight
United Airlines Passenger Hears Cockpit Conversations After Accessing In-Flight Audio Channel
Spain to Conduct Border Checks on Gibraltar Arrivals Under New Post-Brexit Framework
Engie Shares Jump After $14 Billion Agreement to Acquire UK Power Grid Assets
BNP Paribas Overtakes Goldman Sachs in UK Investment Banking League Tables
Geothermal Project to Power Ten Thousand Homes Marks UK Renewable Energy Milestone
UK Visa Grants Drop Nineteen Percent in 2025 as Migration Controls Tighten
Barclays and Jefferies Among Banks Exposed to Collapse of UK Mortgage Lender MFS
UK Asylum Applications Edge Down in 2025 Despite Rise in Small Boat Crossings
Jefferies Reports Significant Exposure After Collapse of UK Lender MFS
FTSE 100 Reaches Fresh Record Highs as Major Share Buybacks and Earnings Lift London Stocks
So, what's happened is, I think, government policy, not just under Labour, but under the Conservatives as well, has driven a lot of small landlords out of business.
Larry Summers, the former U.S. Treasury Secretary, is resigning from Harvard University as fallout continues over his ties to Jeffrey Epstein.
U.S. stocks ended higher on Wednesday, with the Dow gaining about six-tenths of a percent, the S&P 500 adding eight-tenths of a percent, and the tech-heavy Nasdaq climbing roughly one-and-a-quarter percent.
From fears of AI-fuelled unemployment to Big Tech's record investment, this is AI Weekly.
Apple just dropped iOS 26.4.
US Lawmakers Seek Briefing from UK Over Reported Encryption Order Directed at Apple
UK Business Secretary Calls on EU to Remove Trade Barriers Hindering Growth
Legal Pathways for Removing Prince Andrew from Britain’s Line of Succession Examined
PM Netanyahu welcome India PM Narendra Modi to Israel
×