Updated: Oct 19, 2020
The market is laser focused on one thing. Here’s a hint…it starts with S and ends with -timulus.
If you wanted to know what the stock market did last week, all you had to do was look at the stimulus headlines. On Monday, we had positive headlines and markets rose on stimulus optimism. On Tuesday, there was the tweet by President Trump that he was ending negotiations and stocks fell on stimulus concerns. President Trump reversed his position shortly thereafter, and wouldn’t you know it , stocks moved higher of stimulus optimism. There were more positive headlines on Thursday and Friday and stocks moved higher on stimulus optimism. If this environment of markets moving based on headlines seem familiar, well it is, the same thing happened during the Phase 1 trade deal with China.
For the week ahead, the state of stimulus will continue to move markets. The key question is not if a deal is reached between President Trump, Steve Mnuchin, and Nancy Pelosi. The key question is will the Senate pass a stimulus bill that is roughly two-trillion-dollars?
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