Dow futures rise by more than 100 points in overnight trading as investors monitor Trump’s health

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President Donald Trump addresses the American public after being hospitalized at Walter Reed. October 3, 2020.The White House

Equity futures rose on Sunday as investors brace for another volatile week, with the hospitalization of President Donald Trump adding more uncertainty to the market outlook ahead of Election Day.Futures contracts on the Dow Jones Industrial Average climbed 150 points. The S&P 500 and Nasdaq 100 futures contracts both rose about 0.5%.

Trump said in a one-minute video posted to Twitter on Sunday night that “we’re getting great reports from doctors.” The president also made a short last-minute procession to greet his supporters standing outside the hospital.

Still, Trump does not appear to be out of the woods yet after his doctors said they started treating him with dexamethasone, a steroid recommended for severe cases of Covid-19. The president has reportedly experienced two drops in his oxygen levels since his diagnosis was announced, just before 1 a.m.ET on Friday.

Trump was transferred to Walter Reed National Military Medical Center on Friday after receiving antiviral drug remdesivir. Trump’s doctor, Dr Sean Conley, said on Sunday his condition had improved and he could be released as early as Monday.

“This announcement added another level of uncertainty to the election … an election that in itself is one of many uncertainties surrounding the stock market,” said Matt Maley, chief market strategist at Miller Tabak on Sunday.

After Trump’s diagnosis, Joe Biden opened his biggest lead in a month in the presidential race with 51% of those polled supporting him and 41% voting for Trump, according to a Reuters / Ipsos poll released Sunday.

A victory for the former vice president in November could lead to headaches for Wall Street in the form of higher taxes and tighter regulations, but some also say it could lead to a bigger fiscal stimulus deal that would be good for stocks.

‘Do it’

Trump’s illness, along with a weak jobs report in September, underscored the urgency of another coronavirus relaunch after a months-long standoff in Washington. Optimism for reaching a compromise grew after House Speaker Nancy Pelosi signaled progress on Friday, saying “we are continuing to work on the text to act quickly to facilitate a deal.”

Pelosi on Friday called on the industry to delay the holidays, saying relief for airline workers was “imminent.”

Trump lobbied Congress on Saturday to pass a deal, said in a tweet that lawmakers should “WORK TOGETHER AND GET DONE.”

The President’s condition also underscored the severity of the pandemic that still plagues major states and cities across the country. New York City Mayor Bill de Blasio announced on Sunday that nine zip codes in Brooklyn and Queens would most likely be closed on Wednesday due to a recent spike in new cases.

Despite the shocking news from Trump, the major averages all posted modest gains last week. The S&P 500 climbed 1.5% for its first positive week in five.

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