On Wall Street, stock market indices fell sharply, after US President Donald Trump unexpectedly interrupted negotiations with the Democrats on a package of fiscal stimulus to the economy. In most of yesterday's trading, these indices were in a positive area because investors were hoping for a new package of fiscal stimulus to the economy.
However, after Trump's unexpected message to stop negotiations on that aid package, the indices fell sharply.
"I have asked my MPs to suspend negotiations until the election. As soon as I win, we will vote on a large aid package that will be aimed at American workers and small businesses," Trump announced on Twitter, accusing Democratic leader Nancy Pelosi of not negotiating "in good faith. “
In recent weeks, the market has been supported by the hope for a new package of incentive measures, considering that most of the measures from the first package of incentives have expired, and that the recovery of the economy from the corona crisis has lost momentum.
"Much of last week's market growth was based on hopes for an additional stimulus package. There are far fewer reasons to invest in stocks before the presidential election," said Robert Phipps, CEO of Per Stirling Capital Management.
Negotiations on the new incentives lasted for two months, considering that the Democratic representatives in the Congress proposed a package worth 2,200 billion dollars, and the White House 1,500 billion. Shares in the consumer sector fell the most yesterday, by more than two percent, while most of the other most important sectors of the S&P 500 index recorded a decline of more than one percent.
Is this just another maneuver by Trump and aimed at demonstrating strength and a desire to show that without him and his interest groups there is no incentive for the economy?