Today’s trading on Wall Street was unusually calm, with major stocks showing minimal fluctuations between small gains and losses. The job market has shown some improvement following a recent spike in unemployment claims, but the number of new claims remains high at approximately 787,000. Investors are holding back on making significant moves as they await clarity on the future.
“Investors are currently in a holding pattern,” remarked Sam Stovall, the chief investment strategist at CFRA Research. “There is a general acceptance that no stimulus package will be agreed upon before the upcoming election.”
Efforts to reach a consensus on a new economic stimulus package for the US, valued at around $2 trillion, have been ongoing between U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin. However, Senate Republicans have expressed reluctance to support such a large package due to concerns about the growing federal deficit. One key aspect of the proposed bill is the inclusion of another round of stimulus checks for American citizens, a measure supported by both the left-leaning side and President Donald Trump. Until an agreement is reached, the economy and the American public will likely continue to struggle amid the ongoing pandemic-induced recession.
Although most investors have resigned themselves to the likelihood of no new stimulus package being approved before the election, tonight’s presidential debate between President Trump and former Vice President Joe Biden could potentially sway the situation.
