#Stocks jump on hopes for stimulus, speedy Trump recovery

US stocks rose sharply Monday after President Trump announced the end of his coronavirus hospitalization, capping off a strong day of trading that also reflected Wall Street’s renewed hope for a second round of stimulus funding.

After a morning session that was buoyed by increased optimism in the president’s condition and ongoing talks between Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi, markets got a final hour shot in the arm when Trump tweeted that he was headed back to the White House after a weekend at the Walter Reed National Military Medical Center.

“I will be leaving the great Walter Reed Medical Center today at 6:30 P.M,” The president tweeted at 2:37pm. “Feeling really good! Don’t be afraid of Covid. Don’t let it dominate your life.”

The tweet sent the Dow Jones industrial average up roughly 125 points in just over an hour to close up 465.83 points, or 1.7 percent, at 28,148.64. Similar late gains were seen on the S&P 500, which gained 1.8 percent to close at 3,408.60, and the Nasdaq, which popped 2.3 to end the day at 11,332.49.

Trump’s tweet paired nicely with the news that Pelosi and Mnuchin held a long phone call on Monday to trade numbers on a new bailout package for the coronavirus ravaged economy.
Investors are expected to remain jittery, however, given continued uncertainty over Trump’s recovery, which could take weeks or even reverse course.

Investors became unmoored on Friday upon learned of the President’s diagnosis as it raised concerns about his ability to govern and created a whole new layer of uncertainty around the upcoming presidential election.

Over the weekend, Trump’s doctors revealed that his coronavirus treatment included dexamethasone, a steroid treatment typically reserved for severe cases of COVID-19, and an experimental antibody cocktail made by Regeneron Pharmaceuticals. The drug maker’s stock jumped 7 percent on Monday to close at $605.08.

On Monday, Trump’s physician Sean Conley Ok’d the president release from the hospital, saying “he’s met or exceeded all standard hospital discharge criteria,” while also warning that he’s is not “out of the woods yet.”

But Conley also made it clear that he will not be answering certain questions about the president’s heath, including finding about a recent scan of his lungs, saying that this information is protected by the Health Insurance Portability and Accountability Act.

The CBOE Volatility Index — known as Wall Street’s “fear gauge” — jumped another 4.1 percent Monday after hitting its highest level in a week on Friday, a signal that investors will remain highly sensitive to developments around Trump’s health as well as the stimulus talks.

“While the backdrop is supportive for markets over the coming months, investors should brace themselves for near-term volatility given the uncertainty with upcoming US elections and continued concerns around a delayed economic recovery should we see a second wave of the virus,” said Frank Panayotou, managing director at UBS Private Wealth Management.
With Post wires