Wall Street Rocked by Trump’s Coronavirus Diagnosis as Top Three US Indexes Slip | Economic news


Wall Street stocks have been volatile after US President Donald Trump said he and his wife tested positive for the coronavirus just weeks before the election.

As expected, the three major US stock indices – the Dow Jones, the S&P 500 and the Nasdaq – were down at the start of trading.

The Dow Jones Industrial Average opened 1.4% lower, the S&P 500 fell 1.24%, while the Nasdaq Composite fell 2.15% at the opening.

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However, the market quickly rallied and reduced previous falls, with the Dow recovering most of the lost ground and the S&P and Nasdaq also coming out of their session lows.

In Europe, equities also reduced or even canceled their losses at the close.

The UK’s leading FTSE 100 index recovered from the initial shock to end up 0.4% after losing as much as 1.2%.

The German DAX closed 0.3% lower and the French CAC 40 ended the day slightly up 0.02%.

However, oil prices fell 3% to below $ 40 a barrel.

Financial nervousness followed Trump’s Twitter announcement that he and his wife had tested coronavirus after Hope Hicks, a senior advisor who recently traveled with the president, had also tested positive.

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He said, “We will begin our quarantine and recovery process immediately. We’re going to get through this TOGETHER! ”

This has caused investors to scramble for the perceived safety of the dollar, yen and gold.

Analysts said the news could hurt Mr. Trump’s campaigning ability and increase market volatility at a time when investors
were already nervous after a moody presidential debate that heightened fears of a messy transfer of power.

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Trump on aid tested positive for COVID

“It’s just more insecurity as a close and controversial election approaches,” said Oliver Pursche, president of Bronson Meadows Capital Management in Connecticut.

“And given that Trump does not adhere to conventional norms and rules, who knows what he will do in terms of postponing the election. ”

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Meanwhile, data showed US job growth slowed more than expected in September, with the recovery from the COVID-19 crisis slowing down, although the unemployment rate fell. at 7.9% against 8.4% in August.

“My first reaction was, ‘ouch!’ I don’t think it will do anything for the market, it’s not positive enough, ”said Patrick Leary, chief market strategist at Incapital in Minneapolis.


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