The markets reacted positively to the news of Trump’s discharge and on the hopes that the stimulus deal is likely to be approved faster. All major indices on Wall Street gained 1.5-2.5% on Monday.
On Monday, October 5, the U.S. stock market rallied as President Donald Trump announced his discharge from the Walter Reed Medical Center. In a strong message, President Trump asked people to remain positive and not let the fears on COVID-19 take a tall.
I will be leaving the great Walter Reed Medical Center today at 6:30 P.M. Feeling really good! Don’t be afraid of Covid. Don’t let it dominate your life. We have developed, under the Trump Administration, some really great drugs & knowledge. I feel better than I did 20 years ago!
— Donald J. Trump (@realDonaldTrump) October 5, 2020
The Dow Jones Industrial Average (INDEXDJX: .DJI) jumped 465 points of 1.7% closing at 28,148.64 levels showing a positive trend on the stock market. Other indices like the S&P 500 (INDEXSP: .INX) also gained 1.8% while the Nasdaq Composite (INDEXNASDAQ: .IXIC) was leading all with 2.3% gains. President Trump’s discharge has also helped reduce the uncertainty for Election Day.
As per the Reuters poll released on Sunday, Vice President Joe Biden was leading by 10 odd points. As per the polls, Biden is currently leading the presidential race with a 51% majority in favor. Nearly 41% of those polled said they would vote for Trump. President Rump has always been Wall Street’s favorite with his pro-business policies. However, many people still feel that he could have handled the COVID-19 crisis better.
Trump’s physician said that the President’s condition continued to improve on Monday. However, the physician cautioned adding that “he may not entirely be out of the woods yet”. President Trump will be receiving his final dose of Remdesivir at his White House residence on Tuesday evening.
Stimulus Talks Add More Steam to the Stock Market
Apart from the Trump news, Wall Street was waiting for some positive news on another round of fiscal stimulus by the government. On Monday, Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi discussed the “justifications for various numbers”. The two will be having another round of discussion later today.
CNBC analysts Jim Cramer said that Monday’s rally was more about the market optimism with the stimulus talks. “I think this [rally] is more stimulus. I really do. This is hope on talks between Secretary Mnuchin and Speaker Pelosi”. Jim Paulsen, chief investment strategist at The Leuthold Group in Minneapolis told Reuters:
“The stimulus deal is still sitting there, and there’s still communication going on … It looks increasingly like something’s going to get done. Also, “any news that says the president is looking better is sort of news of less volatility, disruptions and unknowns, all of which scare investors,” he said.
Many analysts have suggested the market will continue to remain for the next month. Also, the tight-battle between the two candidates is giving space for more uncertainty.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
