Future contracts for both the S&P 500 and the Dow Industrials lost 1.9%. Oil prices also fell.
Trump tweeted the news of his test results just hours after the White House announced that Senior Assistant Hope Hicks had contracted the virus after traveling with the president several times this week.
Tonight, @FLOTUS and I tested positive for COVID-19. We will begin our quarantine and recovery process immediately.… Https://t.co/CIIB2LDQtr
– Donald J. Trump (@realDonaldTrump) 1601614446000
“To say that this could be a big problem is an understatement,” Rabobank said in a comment. “Anyway, now everything takes a back seat to the latest incredible twist in this US election campaign.”
Trade in Asia was weak, with the Shanghai and Hong Kong markets closed. The Nikkei 225 Index posted strong early gains, shedding 0.8% to 22,999.75 after the Tokyo Stock Exchange resumed trading after an all-day hiatus due to a technical failure.
Reports that the Japanese government is preparing new stimulus measures to help the economy recover from a prolonged recession made worse by the coronavirus pandemic provided only a temporary boost. Prices fell further after Trump’s announcement.
The Australian benchmark S & P / ASX 200 index fell 1% to 5,815.90. Shares in Singapore, Thailand and Indonesia also fell.
On Thursday, the benchmark S&P 500 closed the day 0.5% higher at 3,380.80, the Dow Jones Industrial Average rose 0.1% to 27,816.90 and the Nasdaq Composite rose 1.4 % to 11,326.51, as large technology-oriented stocks propped up the market, as much as they have been through the pandemic.
These big changes have become typical recently, as investors narrow the chances of a Capitol Hill deal to send more cash to Americans, restore unemployment benefits for laid off workers, and provide assistance to airlines and other industries particularly hard hit. for the pandemic.
House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued their talks Thursday, but there was no breakthrough before stock trading on Wall Street ended. Instead, there were only hopes that were periodically raised and frustrated when government officials took turns criticizing each other.
“Things are still going smoothly; we all know what is at stake if this deal doesn’t go through before the markets crash, it is unlikely to be ugly enough,” Axi’s Stephen Innes said in a comment.
Beyond possible political developments, investors will be on the lookout for employment figures to be released on Friday. Data released Thursday painted a mixed picture for the economy, with a report showing that the number of workers claiming unemployment benefits last week fell to 837,000 from 873,000. That was less than economists expected, but incredibly high compared to before the pandemic.
Consumer spending was higher than forecast in August, which is key because it is the main driver of the US economy. But personal income weakened more than expected last month, and growth in the country’s manufacturing sector did not meet expectations either.
With airlines and other major companies announcing layoffs and licenses, another round of financial aid from Congress is seen as crucial. Treasury Secretary Stephen Mnuchin and House Speaker Nancy Pelosi have worked together effectively in the past, helping drive the previous economic bailout approved by Congress in March. But the country’s growing partisan divide has hampered progress, with only a month to go until the presidential election.
The 10-year Treasury yield fell to 0.66% from 0.67% on Thursday night.
US benchmark crude lost $ 1.08 to $ 37.64 a barrel in e-commerce on the New York Mercantile Exchange. On Thursday it dropped $ 1.50 to $ 38.72. Brent crude, the international standard, lost $ 1.05 to $ 39.88 a barrel.
The dollar weakened to 105.05 Japanese yen from 105.54 yen. The euro weakened to $ 1.1731 from $ 1.1747.
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