This week, President Donald Trump sent out a tweet, warning citizens of a possible market crash that’s “never been seen before” if he does not get re-elected in the 2020 elections.
However, experts noted that the tweet was politically inclined to take advantage of the current market that’s sitting on near record highs and that corporate profit margins are near their peaks.
The financial system is not a house of cards as it was back in 2007-2008. Corporate America is sitting on $1.69 trillion in cash, according to Moody’s Analytics.
“First of all, if the employment situation remains strong, the odds are pretty good that Trump will get re-elected. So if he doesn’t get re-elected, it’s a good bet that the employment picture will have changed by November 2020 if it turns out that Trump loses. So if the employment picture is strong enough to hold up the market, it will also be strong enough to help Trump avoid losing the election,” Miller Tabak strategist Matt Maley told Yahoo Finance.
As of today, here are the main moves in markets:
- Futures on the S&P 500 Index increased by 0.1% as of 9:05 a.m. New York time.
- The Stoxx Europe 600 Index decreased 0.1%, the lowest in a week.
- The Shanghai Composite Index gained 0.2%.
- The MSCI Emerging Market Index fell 0.3%, the lowest in more than a week.
- The Bloomberg Dollar Spot Index dipped 0.1%, the largest decrease in more than a week.
- The euro increased by 0.3% to $1.1243, the biggest climb in more than a week.
- The British pound gained 0.1% to $1.2605.
- The onshore yuan increased by less than 0.05% to 6.924 per dollar.
- The Japanese yen was unchanged at 108.56 per dollar.
- The yield on 10-year Treasuries increased one basis point to 2.09%, the first advance in a week.
- The yield on two-year Treasuries gained one basis point to 1.85%.
- Germany’s 10-year yield rose one basis point to -0.24%, the first advance in a week.
- Japan’s 10-year yield climbed one basis point to -0.123%.
- West Texas Intermediate crude dipped 0.8% to $52.10 a barrel.
- Iron ore sank 2.3% to $102.65 per metric ton, the largest tumble in two months.
- Gold decreased 0.1% to $1,340.70 an ounce.
- Soybeans gained 1.6% to $9.38 a bushel, hitting the highest in more than 10 weeks with its sixth straight advance.