WCBI NEWS at 6- 10/31/2020
Economic impact of president's positive test
Saying her father will beat the virus.
The financial markets shuddered a bit after the president announced he tested positive last night.
The dow jones industrial average fell more than 400 points at one point - but recovered.
It moved into positive territory briefly during the trading day -- before slipping again.
Waay 31's megan reyna spoke to an economics professor at u- a-h who said the president's daignosis shouldn't cause a major economic crash.
Hakim says:"markets don't like uncertainty right and we hope they make a full recovery, but sadly there's a possibility that anything can happen."
Wafa hakim is an associate professor of economics at the university of alabama in huntsville.
She told me the initial shock over the news of the president and first lady contracting coronavirus caused a plunge in the stock markets.
Even though the major indices dropped today - they did recover through the day.
Hakim says:"as more information as come out, i think more people have settled down."
Hakim says the bigger impact of this news may not have to do with your bottom line.
She said the president's positive test is a reminder that the virus has not gone away.
But when it comes to wall street -- she believes investors have already made adjustments to keep the market going.
Hakim says:"i wouldn't be surprised if we see the continuation of the same pattern, because at this point we've had enough experience with covid to know how it affects different industries."
The industry that is thriving right now -- technology.
Hakim says:"i think if you look at the industries on average if tech stocks continue to do well, you wouldn't necessarily see a huge crash, you are more likely to see movements come from an increase in volatility."
Today -- the government reports the u-s economy added 661-thousand jobs in septemeber.
It's the final jobs report before
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