Dow jumps 350 points on stimulus optimism as traders monitor Trump’s health

U.S. stocks climbed Monday as investors grew more hopeful that lawmakers would reach a compromise on a new stimulus deal in light of President Donald Trump’s Covid-19 diagnosis and signs of a slowdown in economic recovery. Monday’s gains also came amid indications of an improvement in Trump’s health and the prospect that he may be leaving the hospital soon. The Dow Jones Industrial Average climbed 350 points, or 1.3%. The S&P 500 also rose 1.3%, while the Nasdaq Composite gained 1.7%.

Trump’s illness, as well as a weak September jobs report, highlighted the urgency for further coronavirus aid after a months-long stalemate in Washington. Optimism for reaching a compromise rose over the weekend after House Speaker Nancy Pelosi, D-Calif., signaled hope on Friday, saying “we continue to work on the text to move quickly to facilitate an agreement.” Pelosi on Friday called on the airline industry to delay furloughs, saying additional relief for the industry is “imminent.” The president also put pressure on Congress over the weekend to get a deal done, saying in a tweet that lawmakers should “WORK TOGETHER AND GET IT DONE.”

Trump’s sickened condition also emphasized the gravity of the pandemic that is still roiling major states and cities in the country. New York City Mayor Bill de Blasio announced Sunday that nine ZIP codes in Brooklyn and Queens will most likely shut down on Wednesday due to a recent spike in new cases.

Despite Trump’s diagnosis, major averages all eked out modest gains last week. The S&P 500 climbed 1.5% for its first positive week in five.

Dow jumps 350 points on stimulus optimism as traders monitor Trump’s health, CNBC, Oct 5