Stocks fell Tuesday after Donald Trump tweeted that he was ending talks about a second stimulus. However, the U.S. economy needs that stimulus to continue its recovery, according to Fed chairman Jerome Powell.
Trump calls off stimulus talks
Republicans and Democrats have failed to agree on a second stimulus package. While Republicans have proposed $1.6 trillion in relief, Democrats are fronting a $2.4 trillion package. Amid the stalemate, Trump tweeted Tuesday just before markets closed that he was calling off further stimulus talks until after the November election. Many investors, including Bill Ackman, feel Trump’s decision to end stimulus talks will be bad for the U.S. economy.
...request, and looking to the future of our Country. 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. I have asked...— Donald J. Trump (@realDonaldTrump) October 6, 2020
@realDonaldTrump @SpeakerPelosi Mr. President and Madam Speaker, in that you both agree on the first $1.6T of stimulus, why not immediately fund $1.6T of stimulus and leave the disputed $400B to the outcome of the election? That way, Americans in need can be helped now.— Bill Ackman (@BillAckman) October 7, 2020
And then in later tweets, as if walking back his earlier position, Trump said he was ready to sign a standalone stimulus bill that would give airlines $25 billion for payroll protection, small businesses $135 billion in relief, and households $1,200 checks.
The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!— Donald J. Trump (@realDonaldTrump) October 7, 2020
What’s going on in European stock markets today?
European stocks were mostly steady Wednesday as investors on the other side of the Atlantic digested reports about a second stimulus package. The Stoxx Europe 600 index, Germany’s DAX, France's CAC, and the UK’s FTSE 100 were flat. European investors were also grappling with fresh data showing that Germany’s industrial production weakened in August after three straight months of growth.
What’s going in Asian stock markets today?
Trading was mixed in Asian markets Wednesday. At the close of trading, Japan’s Nikkei 225 was largely flat. In Hong Kong, the Hang Seng Index rose 1.1 percent. Meanwhile, markets in mainland China were closed Wednesday for a national holiday.
U.S. stock futures today
U.S. stock futures rose as investors appeared to hope for a second stimulus package despite Trump’s mixed signals, suggesting a positive opening on Wall Street. Dow Jones futures gained more than 180 points, or 0.67 percent, and S&P 500 futures gained more than 19 points, or 0.57 percent. Meanwhile, futures tied to the tech-heavy Nasdaq Composite added more than 51 points, or 0.46 percent.
Yesterday, the Dow shed more than 375 points, or 1.34 percent, after Trump’s tweet dashed hopes for a second stimulus package. The S&P 500 and Nasdaq Composite fell 1.4 and 1.57 percent, respectively.