Earthquake in the United States. While negotiations continued until then between the government and the Democrats for a new plan to help households and businesses, Donald Trump put an end to it. The US president, recently released from the hospital where he was hospitalized after a positive Covid-19 test, explains that he will take care of it after the November 3 election. “I asked my representatives to stop negotiating until after the election,” tweeted Donald Trump, accusing the leader of the Democrats in Congress, Nancy Pelosi, of not negotiating “in good faith”. “As soon as I win, we will vote on a big aid plan that will focus on American workers and small businesses,” he added.
This thunderclap caused Wall Street to fall just under an hour from the close, while the major indices had hitherto moved slightly up. The New York Stock Exchange ended up clearly in the red. Its flagship index, the Dow Jones Industrial Average, lost 1.34% to 27,772.76 points. The technology-heavy Nasdaq fell 1.57% to 11,154.60 points and the broader S&P 500 index fell 1.40% to 3,360.97 points.
The hope of new aid measures was indeed “one of the engines that had driven the market continuously during the first sessions of October,” said Art Hogan of National Securities. “Nancy Pelosi and Treasury Secretary (Steven) Mnuchin have met or talked every day and we were close to an agreement. But without warning, Donald Trump announces that his negotiators have interrupted discussions with the Democrats” , specifies the expert, for whom this decision will be a blow to the stock market.
Nancy Pelosi is asking for $ 2.4 Trillion Dollars to bailout poorly run, high crime, Democrat States, money that is in no way related to COVID-19. We made a very generous offer of $ 1.6 Trillion Dollars and, as usual, she is not negotiating in good faith. I am rejecting their …– Donald J. Trump (@realDonaldTrump) October 6, 2020
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The US deficit is widening
In a statement, Nancy Pelosi regretted that Donald Trump “put his interests ahead of that of the country, with the full complicity of Republican members of Congress.” By deciding to end the negotiations, the tenant of the White House also took the opposite view of the president of the American Central Bank (Fed), Jerome Powell, who had pleaded in the morning for new stimulus measures. “Too weak support could lead to a more fragile recovery, leading to unnecessary suffering for households and businesses,” Jerome Powell warned in an alarmist speech.
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Among Tuesday’s indicators, the US trade deficit widened again in August, increasing 5.9% from July, due to a stronger rise in imports than exports, according to department data. Trade. Among the values of the day, the American airline Southwest, which called on its unionized employees to accept wage cuts to avoid layoffs and layoffs until the end of 2021, fell by 2.36%. The German laboratory Biontech, associated with the American Pfizer (-1.58%) for the development of a vaccine candidate against Covid-19, has climbed by more than 6%. The German-American alliance announced on Tuesday that it had submitted its tests for approval to the European Medicines Agency. General Electric lost 3.74%. The US financial markets policeman (SEC) warned the company on Tuesday, which has been in trouble for several years, that it could soon officially accuse it of having broken accounting rules.