The U.S. stock market is in a good position. Reportedly, the stock fell in last week's trading. Friday (2/10) local time, the Dow Jones Industrial Average fell as much as 0.88% to 27577, the S&P 500 slumped as much as 0.51% to 3363. The Nasdaq Composite fell 0.94% to 11,220.
The weakening of the U.S. stock market came after U.S. President Donald Trump was positively infected with coronavirus ahead of the general election. Analysts say the news could put pressure on the Trump campaign. In addition to the president, his wife, Melania Trump, was also positive.
Stock market volatility could increase again amid market action as political tensions increase. Oliver Pursche, president of Bronson Meadows Capital Management, said the latest news added to the uncertainty of the election. Seeing Trump cares not about conventional norms and rules.
Trump's Latest State of the Day
Senior White House officials have said that Trump can still work and work from home. Even so, financial markets continue to see increased risk. U.S. Treasury yields are reportedly shrinking. Major technology stocks, which typically arise when there is market uncertainty, fell between 1.6% and 2.3%.
The US House of Representatives on Thursday night approved a $US2.2 trillion stimulus package. However, a number of Republican leaders in the Senate objected and both sides agreed to resume deliberations. Meanwhile, US labor market growth also slowed in September as the Covid-19 recovery slowed.
The rate of unemployment still falls for 7.9% this month from 8.4% in August. This condition is still considered unstable and market sentiment remains negative for American stocks. On the other hand, this situation can impact the price of the dollar and connect to other commodities.
European Stocks Still Depressed
The Stoxx 600 index is reported to have weakened by 2.03 points (-0.56%) to 359.77. Elsewhere, Germany's DAX index fell 117.76 points (-0.93%) 12, 613.0. This was followed by France's CAC index, which was down 36.55 points (-0.76%) 4 787.49.
The UK FTSE index also dropped 40.65 points (-0.69%) to 5 838.80. Declines are almost occurring in all sectors. It indicates that until now European Exchanges are still in negative market sentiment or in a fairly depressing situation. It is quite difficult.
Trump said that he and his wife Melania Trump were diagnosed with Covid-19. The announcement was made in a tweet. They underwent tests after his staff and adviser Hope Hicks was also declared positive before.
Earlier, they traveled together onboard the Air Force One presidential plane to attend the inaugural presidential election debate. They will begin the quarantine and recovery process as soon as possible. Through his Twitter account, President Trump is optimistic if they can get through it together.
Stocks in Asia-Pacific Fall
Interestingly, it's not just stocked in the United States that are affected by the news from Donald Trump. Several stock indexes in the Asia-Pacific were also reportedly on the back of the news. The Australian index ambles more than 1.3% and Japan's Nikkei 225 index is down 0.8%.
In contrast, South Korea's Kospi index gained 0.9%. In terms of data, market participants are preparing to closely monitor the U.S. Department of Labor's report on nonfarm payrolls and the unemployment rate released at 7:30 p.m. The certainty about the stimulus of United States funds is also awaited.
However, many are pessimistic that this stimulus will be legislated. They say that it is difficult to ratify stimulus with the current draft. If it is passed, then there are likely to be some points that will be changed from the draft.
This is what is still being watched by many analysts and world market participants today. For your information, the U.S. stock futures fell 500 points because of the news from the US President. That is why; the right solution must be found soon.
