Wall Street set to slide after Trump’s positive COVID-19 test

In this news, we discuss the Wall Street set to slide after Trump’s positive COVID-19 test.

(Reuters) – Major Wall Street indices were set to collapse on Friday after President Donald Trump tested positive for COVID-19 weeks before the election, as Washington’s inability to strike a new fiscal stimulus deal also hurt to feeling.

Trump’s tweet that he and First Lady Melania had contracted the disease messed up global financial markets and prompted investors to rush to the perceived safety of the dollar, yen and gold.

Analysts said the news could hurt Trump’s campaign capacity and increase market volatility at a time when investors were already nervous after a chaotic presidential debate that heightened fears of a disorderly transfer of power.

“There are more questions than answers right now (and) the stock markets tend to sell first and ask questions later,” said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, in North Carolina.

“Until there is concrete news (around) how he feels, it will probably be difficult for the market to bounce back in any meaningful way.”

A senior White House official said the president was “not incapacitated” and would work from his residence.

At 8:36 a.m. ET, Dow 1YMcv1 e-minis were down 390 points, or 1.41%, the S&P 500 e-minis EScv1 were down 47.75 points, or 1.42%, and Nasdaq e-minis 100 NQcv1 lost 233 points, or 2.01%.

The lack of risk triggered a widespread pre-market decline as GS.NJPM.NMS.N banks tracked Treasury yields and tech mega-caps, which generally tend to outperform in times of crisis. economic uncertainty, falling between 1.9% and 2.9%. .

Tesla Inc TSLA.O slipped 4.3% even as it reported record third quarter vehicle deliveries.

Trading in U.S. stocks turned volatile last month, with the S&P 500 recording a five-month streak of gains, with economic data pointing a long way to pre-pandemic levels and Congress deliberating on the next round of fiscal stimulus.

With a bipartisan deal eluding House Speaker Nancy Pelosi and the White House, the U.S. House of Representatives on Thursday approved a Democratic $ 2.2 trillion tax aid plan, but objections from top Republicans risk to condemn the plan in the Senate.

Airlines including United Airlines Holding Inc UAL.O, Delta Air Lines Inc DAL.N, JetBlue Airways Corp JBLU.O and American Airlines Group Inc AAL.O fell between 3.1% and 4.2%.

Meanwhile, data on Friday showed US job growth slowed more than expected in September as the recovery from the COVID-19 crisis slows down. The closely watched report from the Ministry of Labor was the last before the November 3 elections.

After Trump says he has coronavirus, online gambling site Betfair has suspended betting on the outcome of the election. Betfair odds previously showed Democratic challenger Joe Biden’s 60% probability of victory on Wednesday.

The CBOE .VIX volatility index, known as the Wall Street fear gauge, hit a one-week high.

Reporting by Sagarika Jaisinghani and Devik Jain in Bengaluru; Editing by Shounak Dasgupta and Arun Koyyur

Original © Thomson Reuters

Originally posted 2020-10-03 08:06:10.

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