Joe biden pointing
President Joe Biden arrives to pardon the National Thanksgiving turkeys, Liberty and Bell, during a ceremony on the South Lawn of the White House on November 20, 2023, in Washington, DC.
  • Strong stock market performance to start a year has historically favored incumbent presidential candidates seeking reelection, according to Ned Davis Research.
  • This has been especially true for Democrats, the firm said.
  • The S&P 500 is up roughly 8% so far in 2024.

The stock market's strong rally in the first two months of 2024 bodes well for President Joe Biden's re-election chances in November.

"A strong start to the year for stocks has tended to foreshadow an incumbent victory, especially for Democrats," Ned Davis Research strategist Ed Clissold said.