The markets have descended into the red this afternoon after President Donald Trump said in a Twitter post that he will reject the House Democrats $2.4 trillion stimulus plan.
The Dow Jones Industrial Average fell more than 400 points on the heels of its 205-point gain earlier in the day. The S&P 500 gave up 44 points, to 3,364, and the Nasdaq is down 155 points, to 11,177, as of 3:35 p.m. E.T.
President Trump, who is purportedly on the mend after receiving a COVID-19 diagnosis and extensive treatment at the Walter Reed National Military Medical Center in Bethesda, Md. over the weekend, tweeted this afternoon that he has instructed his representatives to stop negotiations on a stimulus package that was expected to prop up a coronavirus-battered United States economy.
“Immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,” Trump added.
…request, and looking to the future of our Country. I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business. I have asked…
— Donald J. Trump (@realDonaldTrump) October 6, 2020
Last week, House Democrats revealed a $2.2 trillion bill — much less than the $3.4 trillion Health and Economic Recovery Omnibus Emergency Solutions (or HEROES) Act that passed the House in May but was disregarded by Senate Republicans. The measure was set to serve as a followup to the $2.2 trillion Coronavirus Aid Response and Economic Security Act (or CARES) Act that was introduced at the end of March as the COVID-19 health crisis took hold in the country.
Like the CARES Act, the newly unveiled coronavirus-related legislation would have provided a second round of $1,200 checks for individuals and $500 per dependent. Another $225 billion was slated for education, while $57 billion would help support child care for families. It also sought to restore the $600 weekly federal unemployment benefits, which expired at the end of July, and continue those payments through the end of January.
It’s been a tumultuous several days for the U.S. economy and the stock markets, which have taken a roller coaster ride since early Friday morning with the commander in chief revealed via Twitter that he and first lady Melania Trump had both tested positive for COVID-19.
Footwear stocks moved today in tandem with the markets, with DSW parent Designer Brands Inc. down more than 7% to $5.82; Caleres shedding 3.4% to $9.82; Under Armour in the red 2.5% to $10.33; and Journeys parent Genesco down $4.6% to $21.56.