Donald Trump has been hospitalized after he tested positive for the coronavirus. With just weeks left for the November presidential elections, the president’s deteriorating health has stirred up some US stock market predictions.
The US stock market had shown signs of slow progress after the second stimulus check negotiations resumed. On Friday, the S&P 500 loss was below 1 percent and the safe-haven assets saw limited market demand as well. The Trump coronavirus and his hospitalization news broke out after the end of the trading day on Friday. The president remained at a military medical facility on Saturday as well.
Things do not look very good for the US stock market as of now. As it is, the coronavirus pandemic has caused unprecedented job losses. On top of that, many seem to be waiting for an impending political instability.
The US Stock Market And Trump Both In Jeopardy If The President Does Not Recover Soon
The US stock market recently saw its worst performance since March. It looks like political uncertainty will further cause market turbulence.
Currently, there are many predictions that various market analysts are speaking of. Many say that if Trump makes a quick recovery, it will show his supporter that he is a fighter and that he was correct about the non-seriousness of the coronavirus all along. Others say that if his health further deteriorates, it will lead to political unrest, which will definitely sour market sentiment.
As per experts, the momentum and technology stocks will be more vulnerable to a possible sell-off if uncertainty continues. As it is, Nasdaq decreased by over 2 percent on Friday.
Currently, Alphabet, Apple, Amazon, Microsoft, and Facebook are the five biggest companies in the US stock market to account for 25 percent of the S&P 500’s capitalization.
Coronavirus News Has Intensified Second Stimulus Package Talks
The President’s uncertain health conditions have led to growing nervousness amongst stock market investors. As a result, everyone is looking towards the Washington lawmakers to come to a deal soon. The second round of stimulus checks will work as a stabilizing factor in the currently turbulent US stock market.
On Friday, Speaker Pelosi told media sources that they are very close to reaching a stimulus package deal.
Experts believe that fresh coronavirus relief aid will help The US economy recover. A market analyst from the SunTrust Advisory said that companies with underweight stocks can use this market volatility to increase their equities.
The financial and industrial stocks rallied with 0.7 percent and 1.1 percent in the Friday S&P 500 index.
One major cause of concern for US stock market investors is a concern over Trump’s willingness to leave the White House complacently if he loses the upcoming presidential elections.