Stocks Skid After Trump Tests Positive For The Coronavirus
Stock prices tumbled following reports that President Trump tested positive for the coronavirus, adding a big note of uncertainty about the economy's prospects weeks before the November election.
Updated at 10:10 a.m. ET
Meanwhile, a disappointing September jobs report compounded the uncertainty, suggesting that the economic rebound may be running out of steam.
The Dow Jones Industrial Average was down more than 100 points, or 0.5%, paring some of its earlier opening losses. The Nasdaq composite index fell 0.8%.
The president's positive coronavirus test is the latest twist in what has been a pandemic-related roller coaster for financial markets.
Job growth slowed sharply in September, as U.S. employers added just 661,000 new workers, according to the latest report from the Labor Department on Friday.
The report is adding to concerns an economic recovery is stalling with big companies such as United Airlines, The Walt Disney Co. and Allstate Insurance Co. recently announcing major job cuts.
Meanwhile, markets have shown larger swings in recent days as investors tried to game out prospects for another round of relief payments from Washington. House Speaker Nancy Pelosi, D-Calif., has been negotiating over a possible package with Treasury Secretary Steven Mnuchin, but the talks have yielded no breakthrough yet.
Earlier relief payments helped cushion the financial fallout from the pandemic, but much of that aid has now expired. A report from the Commerce Department on Thursday showed that personal income fell in August. Modest wage gains were more than offset by a deep drop in unemployment benefits.
Stocks fell sharply in the spring as the virus spread across the globe. But U.S. markets then mounted a remarkable comeback. Thanks to a surge in big technology shares, both the S&P 500 and the Nasdaq indexes hit new highs in early September. [Copyright 2020 NPR]
