US stock market futures on Friday fell on worries after President Donald Trump contracted COVID-19, risking his re-election and hefty tax breaks for corporations.
Futures for all three major indexes – the Dow Jones, S&P 500, and Nasdaq – were down more than 1% around 0400 EDT (0800GMT), and could possibly head for larger losses after opening bell at 0930 EDT (1330GMT).
While Trump contracting COVID-19 risks his re-election campaign, one month from the Nov. 3 polls, the huge tax cuts he provided corporations since 2018 are in jeopardy, since his opponent, Democratic nominee Joe Biden, wants to roll them back.
Wall Street has long favored Trump’s policies, since tax cuts resulted in higher earnings for companies, and led to multiple records in stock market indexes in recent years.
Another issue for investors is the extent of COVID-19 among the White House staff and Trump administration, which poses additional risks to the relief bill talks that have just restarted.
Democrats last week unveiled a new $2.2 trillion economic stimulus plan, while House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have started renegotiations this week.
Pelosi said late Thursday she has not yet reached an agreement with Mnuchin, but the House of Representatives approved the bill in a 214-207 vote, which is unlikely to pass the Republican-controlled Senate as they are seeking a relief package of only around $500 billion.
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