All it took was one tweet.
 | TUE, OCT 06, 2020 | | | | DOW | | NAME | LAST | CHG | %CHG | | AAPL | 113.16 | -3.34 | -2.87% | | BA | 159.54 | -11.66 | -6.81% | | CSCO | 38.57 | UNCH | UNCH | |
| | S&P 500 | | NAME | LAST | CHG | %CHG | | GE | 6.17 | -0.24 | -3.74% | | AAPL | 113.16 | -3.34 | -2.87% | | AAL | 12.53 | -0.59 | -4.50% | |
| | NASDAQ | | NAME | LAST | CHG | %CHG | | AAPL | 113.16 | -3.34 | -2.87% | | AAL | 12.53 | -0.59 | -4.50% | | AMD | 84.48 | -1.67 | -1.94% | |
| |
All it took was one tweet. The major averages closed sharply lower Tuesday after President Donald Trump called off negotiations on further coronavirus stimulus. In a tweet, he said, "I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business." Before the tweet was sent, the Dow, S&P 500 and Nasdaq enjoyed solid gains. The Dow briefly rose more than 200 points before closing down 375 points. The S&P 500 and Nasdaq ended the day down more than 1% each.  Investors had been on the lookout for additional fiscal stimulus to keep the U.S. economic recovery going. But with the talks collapsing Tuesday, Wall Street may have to wait until after the Nov. 3 election for new aid to come through.
"It will now come down to who sweeps and how much stimulus we get and what it looks like under either a Republican or Democratic congress/President," said Dennis DeBusschere, quantitative strategist at Evercore ISI, in an email. "For now ... the sweep scenario clearly favors the Dems. That is why unwinding stimulus trades should not be taken too far."
Catch The News with Shepard Smith at 7 p.m. ET on CNBC. The nightly newscast provides deep, non-partisan coverage and perspective on the day's most important stories. |
Post a Comment