U. S. stocks shut down Friday in an animated consultation after President Trump said he and the first girl, Melania Trump, had tested positive for coronavirus, leaving money markets a month before Election Day.
After a drop of more than 400 issues in the first operations, dow Jones’ commercial average regained some of that lost floor and ended the day with 134. 09 issues at 27,682. 81. On Friday, new knowledge showed that recruitment slowed down in September for the third consecutive month.
Investors are evaluating the chances that a deal on Capitol Hill will send more cash to Americans, fix unemployment benefits for laid off workers and provide assistance to airlines and other industries affected by the pandemic.
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Trump tweeted the news of its effects a few hours after the White House announced that Lead Assistant Hope Hicks had stuck the virus after traveling with the president several times this week.
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A statement through Trump’s doctor that he and his wife were fine and that he would continue in the workplace gave the impression of calming the market reaction after Dow’s futures first fell to more than 500 numbers overnight. mild symptoms “Friday morning.
Reading the positive check for the world’s largest economy boss adds uncertainty to a developing pile of unknowns that investors are dealing with, first of all, how this can be just the November 3 election and US industry policies. U. S. , Price Lists and many other issues beyond.
“This news was a surprise to investors,” Peter Essele, head of portfolio control at investment advisor Commonwealth Financial Network, said in a note. “It is moderate to assume that markets will be on a volatile floor in October with the best typhoon of a very debatable choice and a pandemic that remains stubbornly on the top floor. “
This unexpected progression adds to a high degree of political uncertainty for money markets in the run-up to Election Day. Democratic presidential candidate Joe Biden leads the polls, the race is closed. Displays the average of real clear politics primary elections. leadership by 7. 2 percentage points.
“Markets seem to see Joe Biden increasingly as the favorite, and this news would possibly not replace that, but Trump may also win the chance for a quick recovery as British Prime Minister Boris Johnson did in his war opposed to COVID-19,” Jeff said. Buchbinder, LPL Financial’s equity strata, said in a note.
Analysts said some of the market movements can be explained through investors as they prepare to await Joe Biden’s victory in the White House on Election Day in just over a month, which can mean higher tax rates and stricter regulations for businesses. which would restrict profits and damage percentage prices.
But analysts said a sweep of the Democratic election may also be the possibility of a big bailout for the economy, a plan that investors say is very important and has so far been blocked by partisanship in Washington.
U. S. employers added 661 billion disappointing jobs in September, as Sunbelt states resumed reopenings disrupted by COVID-19 spikes over the summer, which made up for continued layoffs from troubled companies that have exhausted federal aid. % in August, announced on Friday the Ministry of Labour.
The U. S. economy regained 11. 4 million jobs after the closure, just over part of the total that ended the coronavirus recession.
However, the dismissed staff and other economic sponsors that Congress approved in March have expired, and investors are asking for more help.
Optimism has grown that Washington could go beyond partisanship to bring more to the economy. In the afternoon, House Speaker Nancy Pelosi asked airlines to avoid staffing because attendance was imminent. investors have been agitated for a long time, they may also be on their way.
Discussions between Democrats and Republicans continue about a compromise, skepticism is high.
“The initial market reactions to the news that President Trump tested positive for COVID19 are as expected: negative,” said Jamie Cox, managing spouse of monetary adviser Harris Financial Group, on a note. “However, markets may have unforeseen reactions, as this may end the stagnation of existing stimulus negotiations.
Market volatility was expected this fall, analysts say, as the presidential election cycle begins at full speed as the country faces its first control of a imaginable resurgence of flu cases. .
“As long as the government is functioning normally, markets will be affected, but they will necessarily panic,” said Chris Zaccarelli, senior investment officer at the Independent Advisor Alliance, in an e. “However, this incident shows how COVID-19 remains a risk to the economy and markets. “
The yield on 10-year Treasury bonds rose from 0. 69% to 0. 68% on Thursday night, after taking flight of an earlier loss.
Contribute: The Associated Press