President Donald Trump speaks to the US public after being hospitalized at Walter Reed. October 3, 2020.
The White House
Stock futures rose in overnight trading on Sunday as investors braced for another volatile week. President Donald Trump's hospitalization added more uncertainty to the market outlook ahead of Election Day.
The futures on the Dow Jones Industrial Average rose around 170 points. The S&P 500 futures and the Nasdaq 100 futures both rose about 0.7%.
Trump said in a one-minute video posted on Twitter late Sunday that "we're getting great reports from the doctors." The president also made a quick last minute drive to wave to his supporters outside the hospital.
Even so, Trump doesn't seem out of the woods yet after his doctors said they started treating him with dexamethasone, a steroid recommended for severe cases of Covid-19. The president is said to have noticed two drops in his oxygen levels since his diagnosis announcement just before 1 a.m. on Friday.
Trump was rushed to Walter Reed National Military Medical Center on Friday after being given an antiviral drug remdesivir. Trump's doctor, Dr. Sean Conley said Sunday his condition had improved and could be released on Monday.
"That announcement added yet another level of uncertainty to the election … a choice that is in itself one of the many uncertainties surrounding the stock market," said Matt Maley, chief market strategist at Miller Tabak, in a note on Sunday.
Following Trump's diagnosis, Joe Biden opened his biggest lead in a month in the president's race, according to a Reuters / Ipsos poll published on Sunday. 51% of respondents supported him and 41% voted for Trump.
A victory for the former vice president in November could give Wall Street a headache in the form of higher taxes and stricter regulations, but some also say it could lead to a larger fiscal stimulus deal that would be good for stocks.
& # 39; Get it ready & # 39;
Trump's illness and a weak job report from September underlined the urgency of further coronavirus stimuli after a month-long stalemate in Washington. Optimism for a compromise has increased after House Speaker Nancy Pelosi signaled progress on Friday, saying, "We are continuing to work on the text to move forward quickly and reach an agreement."
Pelosi called on the industry on Friday to postpone vacation days, saying relief for airline employees was "imminent".
Trump on Saturday put pressure on Congress to pass a deal, saying in a tweet that lawmakers should "WORK TOGETHER AND FINISH IT".
The president's condition also highlighted the severity of the pandemic that is still raging across the country's major states and cities. New York Mayor Bill de Blasio announced on Sunday that nine postcodes in Brooklyn and Queens are most likely to close on Wednesday as there has been a recent surge in new cases.
Despite the shocking news from Trump, the top averages saw modest gains last week. The S&P 500 rose 1.5% in its first positive week in five years.
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