Several stock markets around the world were rattled when news came out that US President Donald Trump tested positive for COVID-19.
Feeling the immediate effects of the news were the US Stock markets as they opened lower on Friday as markets went volatile when the news broke out.
The Dow Jones fell 217 points, or 0.8%, to 27,599 in early trading to as high as 370 points at opening bell. The S&P 500 index also declined 0.7%, while the tech-heavy Nasdaq dropped 1%.
Among the concerns raised by investors are on how the government will function if Trump’s health condition worsens and if other close aides and senior government officials were also affected.
To date, Trump is among the top leaders worldwide that tested positive for COVID-19. Other world leaders that tested positive for COVID-19 are UK Prime Minister Boris Johnson and Brazilian President Jair Bolsonaro.
Market analysts also raised concerns about the conduct of the election and the presidential campaigns, the Wall Street Journal reported.
With just one month left before the November election, stock markets in the U.S. have remained volatile with some traders selling stocks early and get into safe-haven assets.
However, in Friday’s afternoon trading, stocks recovered after steep losses in the morning after Speaker Nancy Pelosi opened up about relief aid for the airline industry while expectations are high that a broader stimulus package is coming for Americans.
Tonight, @FLOTUS and I tested positive for COVID-19. We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!
— Donald J. Trump (@realDonaldTrump) October 2, 2020
President Trump tweeted early Friday that he and First Lady Melania Trump turned positive in their COVID-19 tests.
“Tonight, @FLOTUS and I tested positive for COVID-19. We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!” Trump tweeted.
A few hours earlier than the announcement, Trump said Hope Hicks, one of his close aides and political advisor tested positive for COVID-19 forcing President Trump and his wife Melania to go into quarantine.
Meanwhile, not only the US stock markets felt the shockwaves of Trump’s announcement as markets in Europe and Asia also dipped following the announcement.
Every major stock market index in Europe fell in early morning trading, but bounced back from some of their losses, with the FTSE 100 in London closing up by 0.4%, according to the Daily Guardian.
Other European markets also reported a decline in stocks with France’s CAC 40 dropping 2% and Germany’s DAX with a 1.1% dip. In Asia, as other markets in Hong Kong and China remain closed, Japan’s Nikkei 225 (N225) ended the day down at 0.7%, while Australia’s S&P/ASX 200 declined by 1.4%.
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