BUSINESS US stock futures fall on Trump COVID-19 diagnosis

BUSINESS

US stock futures fall on Trump COVID-19 diagnosis

AFP

20:47, October 02, 2020

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File photo: AFP

US stocks futures were solidly negative Friday morning on heightened uncertainty following news that US President President Donald Trump and his wife tested positive for coronavirus.

Near 1220 GMT, Dow futures were down 1.4 percent to 27,297.600. 

Futures for the broad-based S&P 500 were down 1.6 percent to at 3,314.74, while those for the Nasdaq were down 2.4 percent at 11,300.00

Trump announced the diagnosis on Twitter early Friday, saying he and first Lady Melania had tested positive but that he was "well."

Stock futures immediately went negative on the news but have been choppy since then. 

Analysts on CNBC noted that there is a wide range of possible outcomes for an individual with coronavirus, from very serious afflictions and even death, to an asymptomatic outcome. There was also speculation the news could improve the odds of fiscal stimulus.

"The knee-jerk selloff makes sense," said Briefing.com analyst Patrick O'Hare, who said it is unknowable how the president's diagnosis will affect the presidential election, ongoing negotiations on fiscal stimulus and a pending Supreme Court nomination.

O'Hare said the fact that the market stabilized after the initial fall shows it is not "catastrophizing" the possible outcomes.

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