2020-10-05 22:05
publication
2020-10-05 22:05
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The president of the United States will leave the hospital where he stayed because of the coronavirus infection on Monday. This information improved the sentiment of Wall Street investors. Similarly to speculation about the possible passing of the second fiscal package.
For several days Political news has an increasing impact on the New York Stock Exchange. Stock prices went down sharply on Friday as the world went round information about the detection of the coronavirus by President Donald Trump. But the American leader announced that he will leave the hospital on Monday and that he is well. In addition, Regeneron Pharmaceuticals shares rose by 7% after Trump’s doctor said the president was treated with a drug manufactured by the company.
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
The second factor supporting the increases on Wall Street was the growing speculation that in Congress, however, a second package of gigantic budget expenditures financed by the expansion of public debt would be passed. And a dozen or so days ago it seemed that there was no chance of that before the elections.
Dow Jones gained 1.68% on Monday and was above 28,000 points. The S & P500, after an increase by 1.80%, reached the level of 3,408.57 points. The Nasdaq Composite rose by 2.32% to 11,332.49 points.
On the macroeconomic front, the ISM index for the services sector positively surprised and rose to 57.8 in September. from 56.9 points recorded in August. Economists expected this indicator to drop to 56.0 points. Rising ISM above 50 points (same as PMI) signals accelerating pace of economic activity improvement.
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