In what looks to be somewhat of a backtrack by President Trump on his previous statement, stocks on Wall Street appeared to be recovering after the opening bell Wednesday. Initially, Trump said he would discontinue all talks on another stimulus package until after the election.
In a tweet the president posted to his Twitter page, he stated he was now open to the idea of sending out another round of $1,200 stimulus checks to the American people. This change of mind saw the S&P 500 rising slightly higher, 1.3%, in early hours trading. He also stated in the tweet that he was open to the idea of limited programs geared towards helping to prop up the airline industry and small businesses.
Posted late Tuesday, the tweets came just mere hours after Trump’s previous statements send the stock market into a death spiral. The statement declared that Republican representatives should halt all to talks with Democrats regarding the stimulus effort until after the upcoming election. He added that he felt that House Speaker Nancy Pelosi is and has been negotiating in bad faith.
Many financial experts, including the chair of the Federal Reserve, feel that the stakes at this time are significantly high, and add that the current economy needs another “shot in the arm,” seeing as how weekly jobless benefits recently expired as well as other stimulus efforts that were previously in place.
Other sections of the market saw a slight rise after the president’s tweet today. Those include the Dow Jones Industrial Average, which gained 1.5%, and the Nasdaq composite climbed 1.4%. What is surprising is that the gains were as high as they were after those Democratic lawmakers put a call to Congress. They suggested that Congress work to rein in Big Tech companies that are significantly dominating the Nasdaq and several other indexes.
Following a 15-month investigation, conducted by the House Judiciary Committee, a proposal showed that life would possibly become much harder for those giants such as Amazon, Apple, Facebook, and Google’s parent company to take ownership of and acquire others,while at the same time place new restrictions geared towards safeguarding them against future competition.
Federal Reserve Chair, Jerome Powell, just a few hours before Trump’s tweet on Wednesday, asked Congress to come through with an additional plan for more aid.
Do you think Trump’s backtracking on his previous statement was a good move on his part?