It’s been a Trump-centric week for financial markets–and world news in general–as all eyes have been predominantly focused on U.S. President Donald Trump, who last week tested positive for Covid-19 and was hospitalized Friday. Although conflicting health reports continued over the weekend, U.S. stocks rose sharply on Monday, as investors were calmed after it was reported that Trump would be leaving Walter Reed Hospital Monday evening. By Monday’s close, the Dow was up nearly 470 points, while the TSX gained over 200, as crude prices climbed more than 5%.
Although U.S. markets were up for most of Tuesday’s trading, U.S. stocks fell sharply late Tuesday after Trump reportedly ended negotiations with Democrats over a new economic relief package until after election day. The news hit especially hard given that Fed Chair Jerome Powell, just hours earlier, had warned of potentially tragic economic consequences if the administration doesn’t provide more relief to households and businesses hit hard by the pandemic. In response, the Dow fell 376 points, while the TSX dropped 218, led lower by the materials sector and declining gold prices.
Trump news once again held U.S. markets in thrall Wednesday after the U.S. President reversed course and appeared to soften his position on a possible relief package before the November election. The news sent U.S. markets surging, with the Dow adding 531, while the Nasdaq climbed 210. It was also a strong day for the TSX, which climbed nearly 200 points. Cautious optimism over the aforementioned relief package again modestly boosted all four N.A. markets on Thursday.
In U.S. economic news, the number of U.S. job postings fell in September from a month earlier, after posting solid gains during the summer, according to Glassdoor.com. Meanwhile the U.S. posted its largest monthly trade deficit since August 2006, the Commerce Department said Tuesday, as exports of services and manufacturing products stalled. Finally, the number of new jobless claims remains high at 840,000 for last week, once again outpacing economists’ estimates.
source https://richarddri.ca/trump-news-takes-hold-of-financial-markets/
Dri Financial Group 