Winning week despite Friday's slide | Latest on Trump's health | Waiting for stimulus
| EDITOR'S NOTE
First, there was the shocking news that President Donald Trump tested positive for coronavirus, then a disappointing September jobs report. Yet the S&P 500 managed to only dip less than 1% Friday and ended the week with a gain of 1.5%.
Some say that's because investors chose to latch onto the silver lining from this double-whammy: It could serve as a catalyst to break the stalemate in Washington on further coronavirus stimulus.
There were some signs of progress on a deal on Friday. House Speaker Nancy Pelosi called on airlines to halt furloughs, promising some "imminent" aid either as part of a bi-partisan standalone bill or as part of a bigger negotiated relief bill.
"The stock market seems like it was glued to that stimulus," said Jim Paulsen, chief investment strategist at Leuthold Group. "It would swing back and forth on it. The stimulus package matters."
Still, Trump's diagnosis just one month before the election made the stakes a lot higher for investors who have already been on edge about how different outcomes would impact the markets.
In the week ahead, traders will be on high alert for updates on Trump's health as well as the ongoing fiscal stimulus fight. Federal Reserve Chair Jerome Powell is scheduled to give a speech to the National Association of Business Economists on Tuesday.
Powell is expected to discuss the need for fiscal stimulus to stop the economic recovery from faltering after the weak jobs report.
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THE WEEK AHEAD
YOUR WEEKEND BRIEFING
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