Wall Street Falls as Trump Contracts COVID-19
- The US President announced Friday that he has tested positive for the coronavirus.
- Shortly after, index futures fell rapidly, dropping as much as 2%.
- However, markets recovered from the worst of the lows and, while still finishing in the red, leading indices closed positive for the week.
- Trump was rushed to the hospital over the weekend, but has shared tweets and videos several times since, saying he is feeling well.
- Updates about his condition will no doubt impact markets in the week ahead.
- The news took focus away from the recent Presidential Debate, which was described as “the worst in history,” but had no real impact on markets.
Stimulus Hopes and job data Impact US Economy
- The latest NFP report, released on Friday, showed 661,000 new jobs and unemployment of 7.9%.
- While the unemployment rate is the lowest since the pandemic, the job growth was lower than expected, indicating that the economic recovery in the US may be decelerating.
- At the same time, the US Congress approved a $2.2 trillion stimulus package. However, the bill may be rejected by the Republican-led Senate.
Oil Falls on Oversupply Concerns
- Oil prices fell more than 4% to end last week, as worries of an oversupplied market weighed on prices.
- Energy giants Shell and BP, which are heavily reliant on oil prices for their operations, fell to a 25-year low last week.
Cryptos Remain Stagnant
- The cryptocurrency market has been trading within a somewhat narrow margin over the past few weeks.
- Bitcoin has stayed between $10,000 and $11,000, neither falling below the support level nor breaking the resistance.
- Several events happened in the crypto market last week, including a hack into KuCoin, a popular cryptocurrency exchange, in which $218 million was stolen. KuCoin was able to freeze the stolen funds and has said that it identified the culprit.
- eToro launched staking services for Cardano (ADA) and Tron (TRX). You can read more here.
The Week Ahead
- ECB President Christine Lagarde will speak twice (Tuesday and Wednesday), perhaps shedding more light on the Eurozone’s coronavirus recovery plan.
- Fed Chair Jerome Powell will also speak on Tuesday and minutes from the latest FOMC meeting will be released the day after.
- Banks in China are closed through Wednesday due to the National Day holiday.
Written by a team of experienced financial analysts at eToro.
This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results.