Hillary Clinton lost to Vermont senator Bernie Sanders in the New Hampshire Democratic primary sending shockwaves through her campaign.
According to the Guardian, Clinton called Sanders to congratulate him.
The former secretary of state's campaign manager, Robby Mook, said the campaigns were "splitting the first two contests" after her narrow victory in Iowa.
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"The nomination will very likely be won in March, not February, and we believe that Hillary Clinton is well positioned to build a strong - potentially insurmountable - delegate lead next month. They know her, trust her and are excited about her candidacy," Mook said.
The scale of the defeat for Clinton is bound to raise questions about her appeal among younger voters and women.
Sanders - the first Jew to win a presidential primary in American history - started the race more than 40 points behind Clinton and briefly lost the polling lead again in November.