With the stock market at the tips of his fingers. President Trump's tweets have power to rile or calm markets—and that’s what he’s done in the last 24 hours on fiscal stimulus.
Stimulus or no Stimulus? That is the Question
First Trump tweeted Tuesday afternoon that he told his representatives to stop negotiating on the relief package. "Immediately after I win [the election], we will pass a major Stimulus Bill," he said.
Then, after Trump saw the markets tank at the close of trading Tuesday, he changed course, tweeting: “If I am sent a Stand Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY.
He added, “I am ready to sign right now. Are you listening Nancy [Pelosi]?”
In early trading Wednesday, the Dow Jones added 340 points, the Nasdaq Composite gained 150 points, while the S&P 500 inched 1% higher to 3,402.16 points.
On the renewed hopes, airline stocks were sent higher. Shares of American Airlines, (Nasdaq: AAL) Southwest Airlines (NYSE: LUV) Delta Airlines all saw shares rise 4%, 1%, and 2%, respectively in early trading today.
Disastrous Polls Could Give Republicans and Trump no Other Choice
Of course, there is another reason why the President backed off his original stance—and that’s because it won’t help him win the election. In fact, his polls are already disastrous as it is—and the election is roughly a month away. A CNN poll published Tuesday, that was conducted from Thursday through Sunday, showed that Democratic nominee Joe Biden has a gigantic 16 point over President Trump among voters nationwide. More importantly, he has been consistently ahead in the swing states that matter.
The clock is ticking on Trump and the Republican-controlled White House. Currently, Democrats and Republicans are fighting over around $800 billion that would provide relief for states. Democrats have not paid a penalty at the polls for not backing down. This suggests that the ball is in the Republicans' court and should a deal not be reached the GOP will pay a greater price. Still, a deal before the election is possible.
Things could get even worse for Republicans. It's possible that they could lose control of the Senate. The biggest race could be centered around Democratic U.S. Senate candidate Mark Kelly of Arizona, who is challenging Republican incumbent Martha McSally for her seat. In 2020, Kelly has led in the majority of polls and has outraised his opponent in every financial quarter of the race, according to CNN.
In addition, incumbent Vice President Mike Pence is set to take on challenger Sen. Kamala Harris of California in a Wednesday evening debate.