If a stimulus deal was unlikely before Justice Ginsburg’s death and the current SCOTUS battle, it’s all but impossible now. Given that the stimulus payments and enhanced unemployment were largely responsible for the economic bounceback, this makes for a very downbeat economic forecast between now and election day.
Throw in the prospect of renewed/increased shutdowns in key parts of the world, and it’s hard to imagine the market rebounding from here.
But Powell will get another chance to convince investors that the future isn’t quite so dire. Something about tools, yada yada yada. While Mnuchin will likely say very little of anything (it’s his boss who has amped up the stakes in an obvious and understandable attempt to save his political skin) he’s very well versed in happy talk.
Anyone else notice that SPX reversed yesterday at 10.0056% off its recent highs? That’s 19 cents away from exactly 10%. Probably a coincidence…
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