US stocks seen rebounding on optimism about an aid package after the elections

Proactive Investors Wednesday, 7 October 2020
US stocks are expected to rebound in early trade on Wednesday as initial dismay at President Trump’s decision to cancel fiscal stimulus negotiations with US lawmakers was replaced by optimism about an aid package after the elections. Futures for the Dow Jones Industrial Average were 150 points higher, while S&P 500 and Nasdaq 100 futures were up 0.4% each. On Tuesday, the Dow tumbled 365 points, while the S&P 500 fell 1.4% and the Nasdaq Composite dropped 1.6% after Trump announced he would pause stimulus package talks. Trump broke off stimulus talks with Democrats in a tweet, saying that negotiations will stop until after the November 3 election, when he promised a major stimulus bill if he wins. However, in a later tweet, Trump said he would consider limited stimulus measures. The President’s tweets came shortly after Federal Reserve chair Jerome Powell reiterated warnings about the economic recovery, saying that the US economy could slip into a downward spiral if the coronavirus is not controlled and growth sustained. “The reason for US stock futures trading higher is because investors know that whoever will win the US presidential election, another stimulus package is more likely to happen,” said Naeem Aslam, chief market analyst at AvaTrade. A poll on Monday showed Democrat Joe Biden with his widest lead over incumbent Trump in a month, as a majority of Americans said Trump could have avoided the coronavirus infection which hospitalised him at the weekend. Six things to watch on Wednesday: Minutes from the Fed’s September meeting will be published at 1pm on Wednesday. A debate between Vice President Mike Pence and the Democratic challenger nominee, Sen. Kamala Harris of California, is due later on Wednesday. President Trump has said Congress should quickly extend $25 billion in new payroll assistance to US. passenger airlines furloughing thousands of workers as air travel remains down sharply amid the coronavirus pandemic. The US Supreme Court is set to consider whether to protect Alphabet Inc’s Google from a long-running lawsuit by Oracle Corp accusing it of infringing Oracle copyrights to build the Android operating system that runs most of the world’s smartphones. Oil and gas workers withdrew en masse from offshore production facilities as Hurricane Delta grew into a powerful storm over the Caribbean on its way to the Gulf of Mexico. US chipmaker Broadcom will scrap its exclusivity deals with TV and modem makers in a deal with EU antitrust regulators aimed at ending a year-long investigation without a finding of wrongdoing, the European Commission said on Wednesday.
Video Credit: Reuters Studio - Published
News video: U.S. stocks rise as stimulus talks continue

U.S. stocks rise as stimulus talks continue 01:41

U.S. stocks ended higher on Friday and registered gains for the week as optimism over more federal fiscal aid grew. Fred Katayama reports.

You Might Like

Related videos from verified sources

Bipartisan Lawmakers Unveil $900 Billion Coronavirus Stimulus Package [Video]

Bipartisan Lawmakers Unveil $900 Billion Coronavirus Stimulus Package

Bipartisan Lawmakers Unveil $900 Billion Coronavirus Stimulus Package . The new proposal was introduced on Dec. 1 after months of congressional idleness. . It consists of nearly $908 billion and..

Credit: Wibbitz Top Stories     Duration: 01:21Published
4 Stock Winners Ahead of Final Election Results [Video]

4 Stock Winners Ahead of Final Election Results

Some of Wall Street's top minds joined TheStreet to break down the stocks and sectors topping their attention ahead of final election results.

Credit: The Street     Duration: 02:58Published
Stocks jump on Election Day stimulus hopes [Video]

Stocks jump on Election Day stimulus hopes

U.S. stocks closed sharply higher on Tuesday as Americans voted in one of the country's most rancorous presidential elections and investors bet it would be decided without a prolonged process, leading..

Credit: Reuters Studio     Duration: 01:13Published

Related news from verified sources

Optimism on virus aid, election boosts world stocks

Global stocks reached a five-week high Monday as traders became optimistic about a coronavirus aid package, a decisive presid -More- 

Australian Market Rises

The Australian stock market is rising on Monday despite the mixed cues from Wall Street Friday. Optimism about a U.S. stimulus package before the presidential...

How major US stock indexes fared Monday

Stocks closed lower on Wall Street Monday amid fading optimism that Washington will deliver more badly needed aid for the economy before the election next...