U.S. indices fall as Trump contracts COVID-19
News that President Trump and the First Lady have tested positive for COVID-19 sent shockwaves throughout markets on Friday.
The announcement was broken by the President himself who tweeted:
The tweet created market uncertainty, as many now wonder how it will affect the US election, which is a month away.
Markets were generally down, with the Dow Jones up only 0.06%, S&P 500 down 0.47% and the Nasdaq suffering the biggest fall of 1.74% in afternoon trading.
September Non-Farm Payrolls disappoint
It is not often that the release of Non-Farm Payrolls are downgraded to second tier status, however that was the case today.
Even though markets were more concerned with the health of President Trump, NFP reports should still be viewed as a key indicator for what’s to come in the next few weeks.
Payrolls increased by 661,000 jobs last month after gaining 1.489 million in August. Many had forecasted an increase of 850,000 in September. Today’s jobs numbers were the smallest gain since the jobs recovery started in May
Still no Brexit Breakthrough, Merkel
With today being the last day of the European Council Special Meeting, German Chancellor Angela Merkel gave her views of the ongoing Brexit negotiations. When asked to update on the status of talks, she stated, “I can’t announce a breakthrough.”
These comments come as Both UK Prime Minister Boris Johnson and the EU have set an October 15th target for reaching an agreement. However, the EU’s chief Brexit negotiator Michel Barnier suggested talks would continue up until the end of the month, adding further tensions to negotiations.
The DAX was down 0.33% on the news.
Quote of the day – “Throughout my financial career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you.”Larry Hite
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Senior Market Analyst