Previous jobs report before the election was considered to be one of the significant market-moving news on Friday. But President Donald Trump’s shocking declaration that he and Melania Trump, the First Lady, have tested positive for Coronavirus altered the whole situation.
The stock market of the whole world fell when President Trump came to twitter and published the news, which pushed further massive uncertainty into the market. And the Dow ended the day around 135 points down with the loss of 0.5 percent.
Stocks around the globe tumbled after Trump tweeted the news, which injected yet another whopping dose of uncertainty into the market. The Dow finished the day down nearly 135 points, a loss of 0.5%. https://t.co/XGjKKaws1v
— KRDO NewsChannel 13 (@KRDONC13) October 3, 2020
Moreover, the S&P 500 tumbled one percent, and specifically, tech markets were faced a hard hit, and also, the Nasdaq was also fell 2.2 percent.
Although the stock drop was not as adverse as some of the people had picturized it. Futures were looking for a higher fall before the market started on Friday.
The chief of investment research at Nationwide, Mark Hackett, said that his knee-jerk reaction to President Trump news is that he (Hackett) is pleasantly stunned by how small reaction there has been in the stock market. He continued that the fact that the stock is not much more down, especially given the average jobs report, is a good indication.
Jobs loss was lesser than expectations
On Friday morning, the American government said that 661,000 jobs were included in September as the country’s destroyed economy revives from the nastiest of the Coronavirus epidemic this spring. The good thing to note that it was a lesser number of jobs than specialists were suggesting.
The rate of unemployment tumbled to 7.9 percent, and it was down from 8.4 percent in August and even less than the prediction given by Wall Street, which was 8.2 percent. Furthermore, investors are clearly seeking to figure out what President Trump’s diagnosis will mean for the future election and for the possibility of more stimulus from Washington.
In September, stocks down, the first monthly decline since March. But the primary indexes is now posted significant gains in the 3rd quarter. Moreover, they are still bigger for the week, ramping up around two percent over the previous 5 days despite the losses that occurred on Friday.
The market strategist for Natixis Investment Managers, Alex Pire, said that there may be a V shape retrieval for the stock market, but look at the economic retrieval, and the actual reality for American people is that it is L shaped. He added that the jobs report demonstrates that there is still a requirement to provide more stimulus.