Major Benchmarks Pivot Lower on Stimulus Postponement

President Trump announced that stimulus negotiations will continue after the election

Deputy Editor
Oct 6, 2020 at 4:30 PM
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After Federal Reserve Chairman Jerome Powell earlier sparked stimulus hopes in calling for additional financial aid, stocks plummeted after U.S. President Donald Trump announced that White House officials will postpone second stimulus negotiations until after the November election. To follow, the Dow swiftly reversed its course to close 375 points lower. The S&P 500 and Nasdaq ended in the red as well, with pressure from Big Tech stocks and stimulus-dependent airline names. Meanwhile, Wall Street's "fear gauge," the Cboe Volatility Index (CBOE) closed 5.4% higher for its sixth-straight win. 

Continue reading for more on today's market, including:

  • The blue-chip stock that wins in October. 
  • Mosaic stock could piece together a rebound on the charts
  • Plus, two discounter stocks making moves; and the airliner avoiding furloughs. 

The Dow Jones Industrial Average (DJI - 27,772.76) fell 375.9 points, or 1.3% today. The only winner, Proctor & Gamble (PG) led the pack, adding 0.2%. On the other hand, at the bottom of the Dow, Boeing (BA) dropped 6.8%. 

Meanwhile, the S&P 500 Index (SPX - 3,360.97) fell 47.7 points, or 1.4% for the day, and the Nasdaq Composite (IXIC - 11,154.60) dropped 177.9 points, or 1.6%.

Lastly, the Cboe Volatility Index (VIX - 29.48) tacked on 1.5 points, or 5.4% for the day.

Closing Summary 1006

NYSE Nasdaq 1006 2

  1. The Supreme Court is hearing cases from three different major businesses. The decisions, which will affect a wider scope of American businesses and consumers, are expected by the end of June 2021. (CNBC)
  2. Cell-based meat, an alternative meat source derived from labs, is gaining traction. Though products have yet to reach the market, here are five companies that are leading the way forward in this industry. (Marketwatch)
  3. Analysts chime in on Costco stock.
  4. Retail name boosted on holiday hiring spree. 
  5. The airline requesting pay cuts from employees. 

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Gold Futures Retreated from Highs

Oil prices settled higher for the second-straight session as Hurricane Delta, now a category four, threatens energy facilities in the Gulf of Mexico. November-dated crude rose $1.45, or 3.7%, to settle at $40.67 per barrel. 

On the other hand, gold futures slid from their highs, amid a rise in treasury yields and a weakening dollar. Gold for December fell $11.30, or 0.6%, to settle at $1,908.80 an ounce. 


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