Article written by Kyle Woodley
After a tough week for most major U.S. market indices, Monday proved to be a day in the green.
Hope for new fiscal support from Washington was the main catalyst of the rally, as House Speaker Nancy Pelosi’s Sunday comments that the House is working on a “lesser” $2.4 trillion stimulus package helped spur markets. Pelosi also said she was scheduled to talk to Treasury Secretary Steven Mnuchin Monday (today).
The DJIA closed up over 400 points, with BA (Boeing) driving the surge with a 6.4% gain.
Other action in the markets included:
- The S&P 500 finished up 1.6% to 3,351.
- The Nasdaq Composite closed 1.9% higher to 11,117.
- The small-cap Russell 2000 jumped 2.4% to 1,510.
However, markets will likely react more adversely to the 1st Presidential Debate held in Cleveland tomorrow night, as both parties will give investors a first look at the nations economic picture and their plans for the next 4 years.
“The U.S. election is taking place against a historic backdrop of a pandemic, recession and domestic strife,” say BlackRock Investment Institute strategists. “The outcome could have significant implications for key policy areas: fiscal stimulus, public investment, taxation, regulation and foreign affairs. It also has the potential to supercharge structural trends such as an increased policy and market focus on sustainability.”
Additionally, despite a rise in COVID 19 cases across the United States (and most other Western countries), which has pounded retail sales and consumer confidence, one silver lining would be America’s sports scene is beginning to normalize, with professional baseball, basketball, hockey and football all successfully returning to action this fall (MLB playoffs begin tomorrow). This has increased investor interest in sports betting companies, as they have become one of the hottest areas of the market recently.
Enjoy the debate tomorrow night
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