Weekly Financial Market Update: October 2, 2020
October 5, 2020
Wednesday marked the end of the third quarter, which saw the S&P 500 rise 8.93% despite a decline of 3.80% in September. Following a 20.54% rise in the second quarter, the S&P 500’s third quarter advance brought its six-month return to an impressive 31.31%. Shifting focus to this week, stock market volatility increased in recent days as investors contended with lingering uncertainty about the prospects for another round of fiscal stimulus, employment data, and virus concerns.
Friday’s early morning announcement that the President and First Lady tested positive for COVID-19 caused additional market volatility. Speaker of the House of Representatives Nancy Pelosi and Secretary of the Treasury Steven Mnuchin were in frequent communication this week as Democrats and Republicans continued efforts to agree on another fiscal stimulus package. On Wednesday, Mnuchin proposed a $1.6 trillion package. The following day the House narrowly passed Democrat’s $2.2 trillion bill.