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Dow tumbles 200 points after President Trump tests positive for COVID-19

Oct 2, 2020, 20:06 IST
Business Insider
AP/Kathy Willens
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US equities tumbled on Friday after President Donald Trump and First Lady Melania Trump announced they both tested positive for COVID-19.

Trump was tested late Thursday night after close aide Hope Hicks tested positive for the virus earlier in the week. The White House physician did not say whether the president was showing symptoms, or how long he had been infected. The diagnosis is poised to halt Trump's campaign events mere weeks away from the US presidential election.

All three major stock indexes sank alongside other risk assets as investors shifted cash to safe havens. The Cboe Volatility index — or VIX, which is commonly referred to as the stock market's fear gauge — soared as much as 12% amid the frothy market action.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Friday:

Read more: Legendary trader Ed Seykota took a $5,000 client account and turned it into $15 million in 16 years. He shares the 5 trading rules that contributed to his gargantuan returns and continuing success.

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Investors also faced a worse-than-expected of the labor market Friday morning. American businesses added 661,000 nonfarm payrolls in September, according to the Bureau of Labor Statistics. The reading fell below the 859,000 additions expected by economists surveyed by Bloomberg. The unemployment rate fell to 7.9% through the month, beating the consensus estimate of 8.2%.

Though the government's monthly report marked a fifth straight month of job additions, it also revealed a slowing pace of recovery for the beleaguered labor market.

The millions of Americans still unemployed also find themselves without key assistance from the government. House Democrats advanced their own $2.2 trillion measure late Thursday, aiming to revive a $600 per week expansion to unemployment benefits and send another round of direct payments. Yet Senate Majority Leader Mitch McConnell indicated earlier in the week that Senate Republicans won't back the bill.

Read more: Peter Mallouk built a $34 million RIA into a $50 billion giant. The wealth-management CEO pinpoints 3 opportunities his firm is implementing in client portfolios, and shares 2 tips on how to accumulate wealth.

The US dollar initially slumped on the news of Trump's diagnosis before retracing losses. Treasurys and the yen — both popular safe-haven assets — climbed.

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Spot gold hovered near its key support level of $1,900 per ounce, trading at $1,899.17.

Oil prices continued to slide below $40 per barrel amid the chaotic trading. West Texas Intermediate crude sank as much as 5.4%, to $36.63 per barrel. Brent crude, oil's international benchmark, fell 5.1%, to $38.83 per barrel, at intraday lows.

Now read more markets coverage from Markets Insider and Business Insider:

US Investing Championship hopeful Evan Buenger raked in a 131.9% return through August. He shares the distinct spin he's putting on a classic trading strategy that's led to his outsize returns.

Stock bullishness across Wall Street is back to pre-pandemic levels — and will likely spike even more after the US election, BofA says

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Penn National will nosedive 57% as weak fundamentals overshadow 'internet meme' rally, Deutsche Bank says

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