US stocks fall after Trump calls off talks on economic stimulus

by   |  VIEW 2152

US stocks fall after Trump calls off talks on economic stimulus

US stocks fell across the board on Tuesday after the US President Donald Trump had ordered to halt the pandemic relief negotiations with Democratic lawmakers until the Nov. 3 US Presidential election, eventually pointing towards an irreversible damage to the market participants’ morale.

In tandem, Trump tweeted earlier on Tuesday that a havoc-scale pandemic relief bill would be made available as soon as the Nov. 3 election day would deliver a victory for him, while the Trump’s tweets had backfired on US stocks since the Presidential election would unlikely to yield a decisive result this year due to a mail-in ballot voting system that might delay the overall election process.

Besides, Democrats had reiterated multiple times in recent past that the US President would put up an army of lawyers in a bid to defy the election result, should the voting polls turn against him, eventually stoking possibilities of delaying a stimulus package at least until early-2021 and sending a horrendous shockwave across the money markets on Tuesday.

US stocks pare earlier gains to wrap up the day deep in the reds

In factuality, Tuesday’s Wall St. had opened the day higher, mostly buoying over optimisms that the Democrats and Republicans would reach an accord over a pandemic relief bill, however, following a series of Trump’s tweets that had nullified the feasibility of a pandemic aid before the Nov.

3 US Presidential election, US and global equity markets had begun to gobble up losses and rounded off the day deeper into the reds. In a series of tweets, accusing the US House Speaker Nancy Pelosi of not negotiating in good faith, Trump said earlier on Tuesday, “I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major stimulus bill that focuses on hardworking Americans and small business,” adding to a sombre complexion on investors’ morale.

Citing statistics, on the day’s Wall St. closure, the trade-sensitive Dow dropped 1.3 per cent to 27,772.76 and the benchmark S&P 500 fell 1.40 per cent to 3,360.97, while the tech-heavy Nasdaq shrugged off 1.57 per cent to 11,154.60.

Meanwhile, citing that Trump’s Tuesday move would continue to check the gains in the Wall St. at least until the Nov. 3 US Presidential election, an investment strategist at Baird Willie Delwiche said, “This isn’t just pushing it off until after the election, this realistically is pushing it off until spring.

I don’t think this is just a one-day financial markets reaction. This really goes to the health of the recovery. ”