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.
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.
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.