Stocks fall following Trump’s positive virus test, but close off the worst levels on stimulus hopes

Finance

Stock futures fell in early morning trading on Friday after President Donald Trump said he tested positive for the coronavirus.

Futures tied to the Dow Jones Industrial Average dropped 266 points after earlier plunging more than 500 points. S&P 500 futures and Nasdaq 100 futures were also in negative territory. 

Meanwhile, the yield on the benchmark 10-year Treasury Note fell to 0.6709%. Yields move opposite prices.

White House physician Sean Conley said in a memo, “The President and First Lady are both well at this time, and they plan to remain at home within the White House during their convalescence.”

He also said he expects Trump to “continue carrying out his duties without disruption while recovering.”

Thursday in review

Stocks rose on Thursday, after both the Dow and S&P 500 spent some of the session in negative territory. 

The Dow closed 35 points higher for a gain of 0.1%, while the S&P 500 advanced 0.5%. The tech-heavy Nasdaq Composite was the relative outperformer, gaining 1.4%.

On Friday investors will get a read on the state of the ongoing economic recovery when September’s jobs report is released at 8:30 a.m. ET. The final jobs report ahead of the election is expected to show a slowdown from August’s levels. Economists surveyed by Dow Jones are expecting 800,000 nonfarm payrolls added, down from 1.37 million in August.

Stocks have staged a record rebound since the economic shutdown sent stocks tumbling in March. But the major averages all finished September lower, snapping a five-month win streak, as doubts emerge about the pace and breadth of the recovery.

Zaccarelli noted that while there seems to be a floor under stocks, if the market is to continue moving higher into the end of the year there needs to be strength from more areas of the market. 

“For the market to really push higher for the rest of the year we really need to see some participation from the cyclical sectors,” he said, citing industrials and financials in particular.

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— CNBC’s Christine Wang contributed to this report.

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