Following a poor performance in the Super Tuesday primaries, Massachusetts Sen. Elizabeth Warren officially dropped out of the 2020 presidential race on Thursday, leaving former Vice President Joe Biden and Vermont Sen. Bernie Sanders as the two remaining contenders for the Democratic presidential nomination in 2020.
Warren was unable to secure a single victory in 14 states Tuesday and finished a distant third in her home state of Massachusetts with just 21.4% of the vote.
In a Thursday news conference, Warren thanked her supporters, but she did not endorse Sanders or Biden.
“I guarantee I will stay in the fight for the hardworking folks across the country who have gotten the short end of the stick over and over,” Warren said.
Warren's Progressive Policies
U.S. stocks soared after the moderate Biden scored surprise victories in 10 out of 14 Super Tuesday states, including Texas. Investors see Biden as a less threatening candidate to the economy compared to the more progressive Warren and Sanders.
The Sevens Report’s Tom Essaye recently said a Warren presidency would have been bad news for stock prices. Warren’s economic platform centered on policies such as banning fracking, eliminating private pensions, doubling the national minimum wage, raising taxes on the wealthy and breaking up big tech companies.
“As such, it is a very reasonable statement that if Warren were elected, and these policies were enacted, it would be negative for the stock market in the extreme, because share prices are an expectation of future earnings,” Essaye said back in October.
Warren’s dropout likely didn’t move the SPDR S&P 500 ETF (NYSE: SPY) on Thursday because she hasn't been a top-tier candidate in the race for months.
A potential Warren endorsement of Biden in the coming days could be a nail in the coffin for Sanders, which could potentially trigger another market rally.
Do you agree with this take? Email firstname.lastname@example.org with your thoughts.
U.S. Sen. Elizabeth Warren speaks at the NAACP National Convention in Detroit in July. Benzinga file photo by Dustin Blitchok.