Stocks Don’t Drop As Much As Feared After President Trump Tests Positive for Covid-19

The mini rebound was fueled in part by House Speaker Nancy Pelosi

When President Trump tweeted that he and Melania had tested positive for COVID-19 the world nervously eyed the financial markets to see how they would react. 

It was ugly, initially

Early Friday morning, U.S. stock futures, which often show how the market will move before it opens, dropped

  • Why? Investors don’t like uncertainty, and even though First Lady Melania Trump said she and her husband were feeling good, no one knew how severe the president’s illness was. 

But as the shock of the news faded, the market began to recover after the White House said President Trump was experiencing mild symptoms and felt “energetic.” The Dow and S&P 500 finished the day with only marginal losses. 

The mini-rebound was also fueled by comments made by House Speaker Nancy Pelosi, who signaled a standalone House bill providing aid for struggling airlines could be coming soon. Whether it’s part of a broader relief package or not is unclear, since Republicans and Democrats remain far apart on the size and scope of the relief efforts. But Pelosi said yesterday there was reason for optimism.

Looking ahead…Trump’s health introduces a huge layer of uncertainty into what was already a volatile election cycle.

Via Morning Brew

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