U.S. Stocks Set To Open Lower As Trump Tested Positive For COVID-19

U.S. President Donald Trump Has COVID-19

S&P 500 futures are losing more than 1.5% in premarket trading as U.S. President Donald Trump reported that he and his wife, Melania, had tested positive for coronavirus.

At this point, Donald Trump is feeling well, but markets fear that his health condition may get worse as in the case of UK Prime Minister Boris Johnson, who fought for his life in intensive care unit at the beginning of the pandemic.

There is just one month left before the U.S. presidential election which was already set to be a source of major uncertainty for the market. Not surprisingly, the first reaction of traders was to sell stocks and get into safe haven assets.

Gold and silver are doing well this morning, and the Japanese yen enjoys steady support. One of the biggest losers is oil which is under pressure amid worries that the continued spread of coronavirus will hurt oil demand in the fourth quarter of this year.

Coronavirus Aid Package Talks Have Stalled Again

Yesterday, stocks finished the day on a positive note on hopes for a new stimulus package.

However, it looks like talks between Republicans and Democrats have stalled again. Democrats continue to push for a $2.2 trillion stimulus package, while Republicans believe that the new package should not exceed $1.6 trillion.

While the talks are important for the stock market, traders may decide to ignore the lack of progress in coronavirus aid negotiations and focus on the potential implications of Trump’s illness.

Unemployment Rate Was 7.9% In September

The U.S. has just provided Non Farm Payrolls and Unemployment Rate reports for September.

Non Farm Payrolls report indicated that the economy added 661,000 jobs in September, compared to analyst consensus of 850,000.

Meanwhile, Unemployment Rate decined from 8.4% in August to 7.9% in September.

It remains to be seen whether the encouraging Unemployment Rate report will be able to offset the disappointing Non Farm Payrolls report at a time when many companies in the most troubled industries have started to prepare for mass layoffs.

For a look at all of today’s economic events, check out our economic calendar.