Shares in the US drops after Trump Test Positive for COVID
Shares in the US dropped after President Donald Trump Tested Positive for COVID. All three main indexes fell between 1% and 2.2% in early trade. The indexes are the Dow Jones, the S&P 500, and the Nasdaq
However, hopes of aid for the airline industry has helped lift shares by mid-day. The Dow closed down just 0.48%.
United States top Democrat Nancy Pelosi said relief for airlines was very “imminent”. She had previously called for a comprehensive aid bill. She also said the Congress was now prepared to advance support focused on the airlines. This week, the airlines industry warned that they were moving forward with plans to cut more than 30,000 jobs.
United Airlines and American Airlines are two firms that announced massive cuts. However, following Nancy’s comment their shares shot into positive ending the day up more than 2%.
The gains helped lift shares more widely with the exception of the Nasdaq. The Dow Jones closed 0.48% lower, the S&P 500 index dropped 0.9%, and the tech-focused Nasdaq fell 2.2%.
In London, the FTSE 100 index recovered from falls early in the day, closing up nearly 0.4% at 5,902.1. In France, the Cac-40 ended essentially flat, while Germany’s Dax index fell 0.3%.
Uncertainty for US Shares
Despite economic and political uncertainty, US shares indexes have approached or passed their pre-pandemic highs this summer. The resilience of Shares in the US has surprised analysts.
However, some of that confidence had appeared to slip in recent weeks, amid signs the US jobs recovery was losing steam. Meanwhile Washington remains mired in debate over additional coronavirus spending.
Uncertainty about the election and how quickly its outcome will be settled has added to the economic concerns. Even more so with Mr Trump’s coronavirus test on Friday further compounding the political jitters.
The markets are already fretting about an uncertain election and this adds another layer of uncertainty, favouring the risk-off trade.