Several major Wall Street say they would lower their growth forecasts if negotiations stalled. Julian Emanuel, BTIG’s chief equity and derivatives strategist, said the S&P 500 is vulnerable to test its 200-day moving average of 3,113, which is roughly 7% below Tuesday’s close of 3,360.95. The moving average is a widely observed momentum indicator.
Stocks Gain on Hopes of Partial Relief
There is still hope for short-term help. Trump tweeted Tuesday night that Congress should approve $25 billion in emergency funding for airlines and $135 billion for the currently exhausted Paycheck Protection Program. The president subsequently backed another round of direct payments. He’s “ready to sign right now” if a standalone bill for the $1,200 checks reached his desk. The S&P 500 soared more than 1% after the news. While Trump’s support for piecemeal stimulus clearly boosted investor sentiment on Wednesday, some analysts were skeptical of the impact it could have.