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S&P Futures Rebound As Trump Tweetstorm Leaves Door Open For More Stimulus Talks

It’s been a rollercoaster 24 hours for markets, which initially surged on Tuesday on fresh fiscal stimulus hopes, only to see said hope crushed by Trump at exactly 2:47pm, when the president tweeted that had had “instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.” The tweet unleashed a furious selling spree, which saw S&P futures drop as low as 3,330 overnight after closing 1.4% lower, more than 90 point from their pre-Trump tweet highs.

The tweets sparked the worst session for the S&P 500 and the Dow in two weeks, while airlines sank 3% as the move appeared to scuttle $25 billion in new bailout for the industry. All this happened just hours after Fed Chair Jerome Powell called for more help for businesses and households to keep a nascent economic recovery from faltering.

Trump said the biggest sticking point in the negotiations was the Democratic demand for aid to cash-strapped state and local governments, without which they will have to push through aggressive budget cuts: “I am rejecting their request, and looking to the future of our Country. I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,” Trump tweeted.

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