Wall Street opened sharply lower on Trump uncertainty, when he tested positive for COVID-19. The news upended the looming US presidential election campaign. The Bureau of Labor Statistics reported that the US only added 661,000 jobs monthly through mid-September compared to the consensus forecast of 850,000. Government stimulus is running out and the virus is again spreading more easily as the summer ends and people are more likely to stay inside with others.
Courtesy: Ticker Tocker
The government stimulus response in March was only a fraction of what the market and the economy appeared to need. In March, the Fed and the Treasury joined their balance sheets and planned to allocate up to 10% of GDP to the crisis. That is about $20 trillion, which is triple the stimulus that was provided in March. Then we saw a dead-cat bounce in the economy. The Fed appeared to provide some confidence,