- Donald Trump has tested positive for coronavirus and has caused an uproar in the stock market.
- Futures indices were down in early trading while large-cap tech stocks were down as much as 2%.
- If the president’s case with coronavirus worsens significantly, the November election could be suspended.
Stock markets have fallen in pre-market trading after President Donald Trump tested positive for coronavirus. Dow futures are down more than 400 points, while Nasdaq and S&P 500 futures are down over 1.5% in a matter of minutes.
Large-cap stocks like Apple, Amazon, Microsoft, and Facebook are down around 2% in early trading. Investors are already concerned about the impact of Trump’s positive test, which will throw uncertainty over the upcoming November election.
While Trump has claimed he is feeling “fine,” he must quarantine for at least the next 10 days. If his condition worsens, it can add credibility to presidential rival Joe Biden, who has set himself the goal of taking the Covid-19 pandemic more seriously than the president.
Trump Tests Positive For Coronavirus = Stock Markets Fall
The world learned of Trump’s positive test at 12:54 p.m. Eastern Time. And predictable enough He chose Twitter as the platform for his announcement.
The stock markets reacted immediately. Future indices for the Dow Jones, S&P 500 and Nasdaq all fell within a minute of Trump’s tweet.
The Nasdaq 100 (NQ = F) fell from 11,554 at 12:53 a.m. to 11,487 at 12:56 a.m. before completing a 2.1% dive by falling to 11,306 by 1:34 a.m. The Mini Dow Jones (YM = F) fell from 27,625 at 12:53 a.m. to 27,134 at 1:34 a.m., down 1.77%. And the E-Mini S & P 500 (ES = F) slipped 1.8%.
The markets have stabilized somewhat since the president announced the coronavirus. All three futures indices lag behind by 1.2% to 1.8%.
The same picture holds true for many large-cap stocks. Apple, Amazon, Microsoft, Facebook, Alibaba, Berkshire Hathaway, and Visa all fell by up to 2% before entering the market. Tesla is down by almost 4%at the time of writing.
Donald Trump’s positive coronavirus test has led America into uncharted territory. According to CDC guidelines Trump must now be quarantined for at least ten days. However, if it develops symptoms and they worsen, it can be out of service for significantly longer.
Trump should be fine so far. First lady Melania Trump, who also tested positive for coronavirus, tweeted shortly after her husband that they both “feel well. ”
Such tweets have not calmed the markets as investors realize that things may get worse for Trump. He is 74 years old and clinically obese. Studies have found that out Obesity significantly increases the risk of hospitalization and death from coronavirusWith One paper concludes that this risk increases by an average of 48%.
Trump too has some form of heart disease and He reportedly made an unscheduled hospital visit in November 2019 because of a possible heart attack. Heart disease is also increasing the risk of complications from Covid-19According to studies.
All of this indicates that Trump belongs to the (very) at risk group when it comes to coronavirus. He will likely have the best medical care, but he could potentially be suffering. It is this possibility that has turmoil in the markets, and it could certainly deteriorate for stocks if the president’s health worsened.
The November election
Assuming Trump will get seriously ill (or worse), it’s hard to say what would happen to the November election. Possibly pence (or another republican) would stand up for him. Possibly there would be a delay. It is also possible that severe Covid-19 illness could add to Trump’s credibility and help the Democrat win the White House.
It is It is questionable how the stock market would react to a Biden win, even though Some analysts have predicted a slump. Judging by how the market has reacted to news about Trump’s illness, you may be right.