U.S. stock markets fell sharply in pre-market trading Friday on news that President Donald Trump and First Lady Melania Trump have tested positive for COVID-19.
The Dow Jones Industrial Average was down more than 400 points in pre-market trading on the news of the positive test. The VIX Index, which measures market volatility, rose to 29 but was below peaks seen last week. The Stoxx Europe 600 fell as much as 1.2% shortly after markets in Europe opened.
In a memo, Trump’s physician said that the president and first lady plan to remain at the White House "during their convalescence" and that the medical unit would "maintain a vigilant watch." Judd Deere, a White House spokesman, said contact tracing for Trump was being carried out and "the appropriate notifications and recommendations will be made."
Global markets have struggled since reaching a peak in September, leaving investors looking for the next market catalysts amid the continuing fallout from the COVID-19 pandemic. Thousands of job cuts in the U.S. this week showed how firms are still wrestling with readjustments needed to survive during the pandemic as virus cases continue to climb.
S&P 500 contracts had seen mild weakness earlier Friday after the House of Representatives passed a $2.2-trillion U.S. Democrat-only fiscal stimulus package that Republicans in the U.S. Senate are expected to reject. U.S. payrolls data will be released on Friday ahead of markets opening.
