Trump announced on Friday he and First Lady Melania Trump tested positive for COVID-19, the illness caused by the CCP (Chinese Communist Party) virus. The president was flown to a hospital for treatment later that day, but his doctors said he had responded well to treatment and could return to the White House as soon as Monday.
On Friday, following Trump's diagnosis and failure of lawmakers to reach agreement on the next virus relief bill, U.S. stock indexes closed moderately lower, with the S&P 500 closing down 0.96 percent, the Dow Jones ending the week down 0.48 percent, and the Nasdaq down 2.83 percent at closing bell.
Monday's relief rally comes as initial concerns about Trump's health appear to have eased somewhat, though investors remain sensitive to news about how the illness is affecting the president and, more broadly, to the dynamics of the outbreak and prospects for renewed lockdowns. Doctors said on Sunday that Trump's condition had greatly improved, though they also noted that his blood oxygen level had dropped twice and that he was taking a steroid typically taken by people who are seriously ill.
"Many questions remain including the use of the steroid drug ... which is usually reserved for those with severe illness," said Raymond James strategist Chris Bailey in London. "Global cases now top 35 million and various new restrictions in Paris, New York, etc," he said.
"In terms of the impact on the election, we haven’t seen enough polling to assess whether this increases or decreases his chances of winning," said Deutsche Bank strategists.
"Donald Trump will benefit greatly from his bout with COVID-19, assuming it is not too severe, and right now, it would appear that it’s not," Simon wrote. "It will give him a time out, a cooling-off period from a political campaign that had become too hot to handle, and will ultimately allow him to win."