Stocks ended their four-week losing streak, but then it was announced that the President of the United States contracted COVID-19, which added a whole new level of worry. This week in the LPL Market Signals podcast, we discuss the pandemic hitting the White House, the upcoming fourth quarter, and the disappointment in the jobs market.
COVID-19 strikes the White House
News that President Donald Trump and the first lady tested positive for COVID-19 rocked global markets on October 2. Fortunately, Trump appears to be on the mend and markets are bouncing. The bond market didn’t show much fear, a good sign for the economy. This is a fluid situation and one that could change at a moment’s notice, but so far, things appear to be under control.
Hello fourth quarter
Here comes the best quarter of the year. The usually weak third quarter didn’t play out this year, with the S&P 500 Index up 8.5%. This could bode well for the fourth quarter, as stocks have gained the past 11 times the S&P 500 was up more than 7.5% in the third quarter. But don’t forget—October historically has been the worst month of the year during an election year, so any weakness could be an opportunity.
September nonfarm payrolls came in at 661,000, well below expectations. This continues a recent trend of disappointing employment data, while many large companies continue to lay off workers. Various parts of the economy are doing well, but by no means are things back to where we’d like them to be. One positive is that the odds of another stimulus bill being passed by Congress are higher now.
Tune in now
Listen to the entire podcast to get the LPL strategists’ views and insights on current market trends in the US and global economies. To listen to previous podcasts go to Market Signals podcast. You can subscribe to Market Signals on iTunes, Google Play, or Spotify.
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All index data is from FactSet.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This Research material was prepared by LPL Financial, LLC.
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