Stimulus Deal Could be Reached As Trump Leaves Hospital
U.S. stocks rose Monday after it was announced that President Donald Trump would leave the hospital.
A White House staff member holds the door for U.S. President Donald Trump as he exits Walter Reed National Military Medical Center after a fourth day of treatment for the coronavirus disease (COVID-19) to return to the White House in Washington from the hospital in Bethesda, Maryland, U.S.
U.S. stocks declined in the past few days after the president was hospitalized. With Trump leaving the Walter Reed National Medical Center and going back to the White House Monday, it is expected that a new stimulus package is more likely to reach a deal.
Investors are looking forward to a new stimulus package that could be reached following a report that Trump is leaving the hospital. That just shows how strong and influential the president is in the country despite criticisms thrown against him.
Regeneron Pharmaceuticals Inc. (REGN.O) shares jumped 7.1 percent after the president's physician said that he had been treated with Regeneron's experimental antibody treatment for the infectious and deadly COVID-19.
White House Chief of Staff Mark Meadows told reporters on Monday that the lawmakers could potentially hit a stimulus deal to give more relief aid to millions of Americas that continue to suffer the global pandemic's negative impact.
Meadows noted that Trump remains committed to giving more relief aid to his countrymen. It is still the president's top priority even during the days he was hospitalized due to COVID-19.
He always thinks of his people and continues to work while battling the virus. In fact, Trump even tweeted while in the hospital, urging both chambers to reach a deal on a new stimulus package.
It is a manifestation and a clear proof that Trump's main goal is not to play politics using the stimulus issues but to help millions of Americans and revive the country's businesses.
Meanwhile, Jim Paulsen, chief investment strategist at The Leuthold Group in Minneapolis, is hopeful and optimistic that a stimulus deal could be reached anytime soon.
"The stimulus deal is still sitting there, and there's still communication going on. It looks increasingly like something's going to get done," said Paulsen.
"Any news that says the president is looking better is sort of news of less volatility, disruptions, and unknowns, all of which scare investors," he added.
It is a compliment that investors trusted Trump's presence and how it helps the country's economy.
According to a Reuters report, the Dow Jones Industrial Average (DJI) rose 465.83 points, or 1.68 percent, to 28,148.64, the S&P 500 (SPX) gained 60.16 points, or 1.80 percent, to 3,408.6, and the Nasdaq Composite (IXIC) added 257.47 points, or 2.32 percent, to 11,332.49.
Recently, doubts about the scale of further fiscal aid and a slowing economic recovery have weighed on the S&P 500, with the benchmark index in September registering its worst month since the coronavirus-driven crash earlier this year.
One of the factors that help the market was the positive economic data on Monday. The data last week showed an unexpected slowdown in the domestic manufacturing sector in September.