Dow Futures Extend Decline After Chaotic Presidential Debate


The Wednesday Market Minute

  • Global stocks slide following a chaotic Presidential debate during which President Donald Trump once again refused to commit to a peaceful transition of power.
  • President Trump, and former Vice President Joe Biden traded insults and interruptions in an unedifying 90 minute spectacle that likely changed the minds of very few voters.
  • Germany is using targeted restrictions to tame a resurgent coronavirus, and hopes to avoid a nation-wide lockdown, as the pandemic continues to spread across Europe.
  • Oil prices drift lower as the dollar rallies in safe-haven trading ahead of EIA data on domestic inventory at 10:30 am Eastern time.
  • U.S. equity futures suggest a modestly firmer open on Wall Street, but still the first monthly loss since March, after ADP jobs data  and a final Q2 GDP reading.

U.S. equity futures turned higher Wednesday, while the dollar pushed higher and safe-haven assets rallied, as markets reacted to a bitter and chaotic Presidential debate that once again raised the prospect of a contested election in November.

Payroll processing firm ADP’s September report said private sector employers added nearly three quarters of a million new jobs in September, setting up a stronger-than-expected reading of non-farm payrolls later this week.

Markets also bounced higher following reports of leaked data showing the September Chicago PMI reading pegged at 62.4, more than 10 points ahead of the Street consensus forecast.

President Donald Trump and former Vice President Joe Biden traded insults, jabs, interruptions and exasperation in an unedifying televised clash that is unlikely to change the minds of the few voters that managed to sit through the 90 minute spectacle.

While neither candidate was able to land more than a glancing blow on his opponent, and few if any policy ambitions were revealed, President Trump did once again raise the prospect of an extended election challenge when he refused to commit to a peaceful transition of power if he lost in November.

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