As President Trump left Walter Reed Medical Center on Monday night after his three-day stay at the hospital, the major indexes in the stock market climbed higher as the news broke. Previously, on Friday, following the news of President Trump contracting Covid-19 had caused a retreat in the market.
According to Dr. Sean Conley, the White House Physician, Trump had already met or exceeded all the standard hospital charge requirements however, he added that he “may not be entirely out of the woods yet”
On the other hand, the Democrat candidate, Joe Biden has widened his lead according to multiple polls following President Trump’s Covid-19 diagnosis. He was ahead by 10 percentage points according to a Reuters poll conducted on October 2-3 just before the news of Trump’s positive result came out.
Morgan Stanley Wealth Management chief investment officer, Lisa Shalett, said that this widening has acted in a favorable move for removing the uncertainty that had been weighing on stocks recently. “I don’t think investors want this to go to court, regardless of whether the winner has a blue shirt or a red shirt at the end of the day,” she added. “And I think that with widening polls that possibility gets taken off the table and so a little bit of risk premium comes out.”
Jerome Powell’s Remarks on the Stimulus Deal
Following on early Tuesday morning, investors eyed the stimulus deal talks between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin. Federal Reserve Chair Jerome Powell is also set out to give his remarks at the National Association for Business Economics’ Virtual Annual Meeting. In prepared comments released ahead of the meeting, he reiterated the fiscal stimulus would help support the virus-stricken economy.
“I would argue that the risks of policy intervention are still asymmetric. Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses,” Powell said in the text of the remarks. “The recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side to provide support to the economy until it is clearly out of the woods.”
Stock Markets Show A Mix
On Tuesday morning, the U.S stock futures were mixed as the Dow Jones increased by more than 70 points while those tied to the S&P 500 and Nasdaq fell slightly. As of 9:37 a.m ET, the S&P 500 and Dow Jones rose by 0.05% and 0.19% respectively, while the Nasdaq fell by 0.11%. In the European markets, the pan-European Stoxx 600 ended around 0.1%, banks increased by 3.3% and the healthcare sector fell by almost 1%.
Additionally, oil prices have been increasing as the market gets optimistic about the prospects of the US stimulus plan. Both Brent crude and crude oil increased by 0.1% in early trading in London.
Big Tech Giants Breakup
An antitrust report by the U.S House of Representatives on Big Tech firms contains a “thinly veiled call to break up” the businesses, said the Republican Congressman Ken Buck in a draft response seen by Reuters.
Apple, Amazon, and Facebook stocks fell slightly earlier on Tuesday when Google was not yet trading.
The report is expected to be published this week by the House antitrust subcommittee on the four tech giants.