Wall Street appears to be taking a break from its bearish blues as stocks rose Monday, reacting positively to stimulus talks.
September is historically the worst month of the year on Wall Street, and this proved true after the Dow Jones Industrial Index (NYSEARCA: DIA) fell 2.4% last month, mostly thanks to widespread tech sell-offs which also saw the Nasdaq (NASDAQ: QQQ) fall more than 5%.
October has been off to a rocky start with plenty of volatility, but yesterday proved a great start to the week after all major stock futures rose, with tech stocks leading the way.
The president’s health
President Trump’s coronavirus diagnosis induced a surprisingly muted reaction on the market, yet confirmation yesterday that the president would leave Walter Reed Hospital and return to the White House garnered optimism from investors.
Intraday stock highs were reached immediately following the president tweeting that he would be discharged on Monday:
I will be leaving the great Walter Reed Medical Center today at 6:30 P.M. Feeling really good! Don’t be afraid of Covid. Don’t let it dominate your life. We have developed, under the Trump Administration, some really great drugs & knowledge. I feel better than I did 20 years ago!— Donald J. Trump (@realDonaldTrump) October 5, 2020
Trump’s physician Dr. Sean Conley said Monday the president’s condition has “continued to improve” over the past 24 hours, but cautioned that “he may not entirely be out of the woods yet.”
The month-long stalemate on stimulus talks may finally be making headway after it was confirmed yesterday that House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin held an hourlong phone call to discuss “the justifications for various numbers” and “plan to exchange paper” in preparation for further discussions on Tuesday.
Last week, the House of Representatives agreed to terms for a new $2.2 trillion stimulus package, but this has yet to be passed in the Senate.
The details of the bill include a maximum payout of $1,200 per eligible American adult and additional money for dependents, up to $500 per individual.
The president’s illness, as well as a weak September jobs report, highlighted just how important further coronavirus aid is after a months-long stalemate in Washington.
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