New York Stock Market Closes Lower on Trump’s COVID-19 Diagnosis... Decline Narrowed on Stimulus Hopes

On the 2nd, Dow down 0.48%, S&P down 0.96%, Nasdaq down 2.22%

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The New York stock market closed lower across the board on the 2nd (local time) immediately after U.S. President Donald Trump tested positive for the novel coronavirus infection (COVID-19). There was also some recovery in losses following remarks by House Speaker Nancy Pelosi that a U.S. economic stimulus package deal was imminent.

According to Bloomberg News and others, on that day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 27,682.81, down 0.48% (134.09 points) from the previous session. The S&P 500 index fell 0.96% (32.38 points) to 3,348.42, and the tech-heavy Nasdaq index closed at 11,075.02, down 2.22% (251.49 points).

The market was affected by the shock of President Trump and First Lady Melania Trump testing positive for COVID-19 that day. President Trump announced the previous night that he and the First Lady had tested positive for COVID-19 and would begin isolation procedures. The fact that the U.S. president tested positive for COVID-19 ahead of the November presidential election increased anxiety and uncertainty in the market.

The White House stated that President Trump’s symptoms were mild and that he was conducting work via phone calls, but depending on the severity of symptoms, the possibility of a presidential work gap could not be ruled out. Vice President Mike Pence, who is first in line to act as president in case of presidential incapacity, tested negative for COVID-19 that day.

U.S. employment data that was worse than expected also weighed on the stock market. The U.S. Department of Labor announced that nonfarm payrolls increased by 661,000 in September, less than the market expectation of an 800,000 increase.

However, news that an additional U.S. economic stimulus package deal was near helped the market recover some losses. Speaker Pelosi expressed optimism about reaching an agreement, saying that President Trump’s COVID-19 infection could change the dynamics of the stimulus negotiations. She also said that support for the airline industry would be included in the stimulus package or introduced soon as a separate bill. However, she added that some disagreements remained in the negotiations and that they were waiting for a response from the White House on this.

New York stock market experts expressed concern that political uncertainty had increased further due to President Trump’s positive diagnosis. Lisa Erickson, head of traditional asset investment at U.S. Bank Wealth Management, said, "The market hates uncertainty," adding, "Volatility will increase further as the election season nears its end."

Meanwhile, international oil prices also closed lower on the news of President Trump’s diagnosis. On that day at the New York Mercantile Exchange (NYMEX), West Texas Intermediate (WTI) crude oil for November delivery closed at $37.05 per barrel, down $1.60 from the previous day. International gold prices also fell. December delivery gold at the New York Commodity Exchange closed at $1,907.60 per ounce, down $8.70.

This content was produced with the assistance of AI translation services.