Markets are anticipating fiscal measures from Washington to complement the Federal Reserve doubling its balance sheet in the last year. For all intents and purposes, it seems the President has figured out how trading algorithms work; if he creates a market event but quickly rescues it, algorithms will take the tape higher than it was prior to the event itself.
President Trump put the kibosh on the rally with a tweet storm calling for the Senate to end Covid-19 aid negotiations due to the House’s reluctance to come off its “$2.4 trillion” perch (although their number is $2.2 trillion), and instead focus on confirming Supreme Court Justice nominee Amy Coney Barrett.
U.S. benchmarks were sharply lower after an eventful evening and ahead of Nonfarm Payrolls data. House Democrats marginally passed a $2.2 trillion Covid-19 aid bill last night; the problem being, it does nothing to get a deal done.