Stock index futures edged higher on Sunday night as investors followed President Donald Trump’s response treatment to COVID-19 after his hospitalization with the disease on Friday night.
rose 154 points, or 0.6%, to 27,719, while S&P 500 ES00 futures,
were up 0.5% to 3,357.25. Nasdaq-100 NQ00 Futures,
gained 0.7% to trade at 11313.
Le Dow DJIA,
Friday fell 134.09 points, or 0.5%, to 27,682.81, as the benchmarks ended well after the session lows after Trump’s initial diagnosis was announced. The S&P 500 SPX,
Friday finished 32.36 points down, down 1% to 3348.44, while the Nasdaq Composite COMP,
finished 251.49 points lower, down 2.2%, to 11,075.02.
What drives the market?
Investors and analysts were already bracing for volatile preparations for the November 3 presidential election ahead of Trump’s diagnosis. The weekend saw conflicting reports on Trump’s treatment schedule and his condition.
Coronavirus Update: Expert calls for ‘radical transparency’ on Trump’s treatment and progress against coronavirus as more in president’s circle look positive
Analysts said the main concern for investors right now is whether Trump’s illness will affect a presidential race in which he continues to lag behind Democratic challenger Joe Biden. At the same time, investors are also assessing the prospects for a deal on a stimulus package.
Lis: Here’s What President Trump’s Coronavirus Diagnosis Means For Market Volatility
“In the short term… the dramatic turn of events may be a catalyst for a stimulus deal – or not; we are waiting for the bills to go to Congress and the votes to be taken, ”said Julian Emanuel, chief equities and derivatives strategist at BTIG, in a note. “With key economic data extending its string of disappointments over expectations and significant corporate layoffs, more help seems imperative. ”
The results of a Wall Street Journal / NBC News poll conducted within two days of Tuesday’s highly controversial presidential debate, but before news of Trump’s COVID-19 diagnosis showed Biden extending his lead to 14 percentage points, an advantage of 53% to 39%, among registrants. the electors. The survey showed Biden with an 8-point lead last month and an 11-point advantage in July, previously his biggest lead of the campaign.
“The initial stock market reaction to President Trump’s COVID test announcement never made much sense,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a Sunday memo. “Of course, the markets don’t like uncertainty, but in a country where the election is only four weeks away and very few voters remain undecided, it’s hard to see how Mr. Trump
the diagnosis materially changes the race. ”
Trump’s medics on Sunday said his condition was improving and the president could be fired from Walter Reed National Military Medical Center as early as Monday.
Trump tweeted a second video of himself from Walter Reed on Sunday to brief the country on his condition. Soon after, he was led past cheering supporters outside the hospital, where he waved and waved to the crowd.