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US markets end lower as Trump calls end to fiscal stimulus talks until after election

07 Oct 2020 Evaluate

The US markets ended lower on Tuesday after US President Donald Trump said  that he would end negotiations on a new fiscal stimulus package sent shivers and triggered the sell-off. Trump said he has instructed his administration’s negotiators to stop stimulus discussions with Democrats until after the November 3 presidential election. Meanwhile, Federal Reserve Chairman Jerome Powell said that the US economic recovery remained far from complete and the economy needs more fiscal support. The recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side to provide support to the economy until it is clearly out of the woods.

In economic data front, the US trade deficit climbed almost 6% in August to $67.1 billion, the third widest gap on record, reflecting a continuing struggle by American exporters to recover all the ground lost in the early stages of the coronavirus pandemic.  Hiring and job openings in the private sector fell in August in a sign the U.S. labor market was cooling off as an economic recovery lost some of its earlier momentum.

Dow Jones Industrial Average dropped 375.88 points or 1.34 percent to 27,772.76, Nasdaq fell 177.88 points or 1.57 percent 11,154.6 and S&P 500 was down by 47.68 points or 1.4 percent to 3,360.95.

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MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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