Black Monday is the title of the huge stock market drop in October of 1987. There had to be a lot of well-groomed Wall Street execs and investment bankers nervous there could have been a Freak-Out Friday in store after the news of President Trump having COVID. The announcement sent stocks downward early Friday as uncertainty about the President’s health seemed to spook Wall Street.
The latest revelation injects even more questions into an already on-edge market figuring out the repercussions of the coronavirus and the upcoming elections. By closing time, the market rebounded to the point of wiping out most of the early morning losses but still finished down
The Labor Department also released their September jobs report, which only fueled speculation that the recovery may be running out of gas. The report showed the economy adding 661,000 new positions last month, which fell well short of Wall Street’s expectations. Many are hoping the lower than expected numbers will add urgency on Capitol Hill to get a stimulus bill enacted sooner rather than later. Republican and Democrat lawmakers remain far apart on the dollar amount allocated to another round of stimulus, and also how much should be set aside for states and local aid.
On Friday night, President Trump was flown to Walter Reed National Military Medical Center where he will stay for the next few days as a precaution. Joe Biden, who shared the debate stage with President Trump on Tuesday, and Vice President Mike Pence have both tested negative for the virus.
J.P. Morgan analysts wrote that the President’s illness slightly increased Joe Biden’s chances of winning and “could marginally reduce the post-election risks and market uncertainty.” Projecting anything at this point seems like more of a guess, as really, the only thing for certain is that uncertainty will reign over the coming weeks. Hopefully, brokers and bankers are getting some rest this weekend.
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