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Urgent: Pelosi is optimistic, but the stimulus package will not be today
Negotiations are still ongoing between Nancy Pelosi, Speaker of the House of Representatives, and Treasury Secretary Stephen Mnuchin, and the two sides are trying to bridge the gap in views, according to Pelosi's spokesman, Drew Hamill.
Pelosi said the two sides have made progress, and an agreement could be reached by the end of the day. With this comment, the stock indices reached the heights of today's trading session.
"Over the next 24 hours, the most important thing to watch is the stimulus package," says Tom Lee, founder and head of research at Vandstraat Global Advisors.
"While the markets see the package as not possible before the elections (because it is possible that the agreement will already be after the elections), we see it as an obligation now for Washington, to pass the agreement."
For months now, negotiations have been hanging over the heads of the markets, moving them up and down, since the beginning of August. Despite job growth, consumer spending remains limited. Meanwhile, however, there are signs of savings rising, as stimulus packages begin to expire.
Tomorrow, the Senate will vote on a nonpartisan stimulus package of $ 500 billion. But Republicans would like a $ 2.2 trillion package, and the White House offered a $ 1.8 trillion package rejected by all sides.
Andrew Smith, head of investment strategies at Delos Capital Advisors, predicts that the economy will not return to recession if the package does not pass this week, but he sees a slowdown in the recovery.
Smith said, "We do not believe that the new business cycle will stop if the stimulus package agreement does not pass, but we do believe that the stimulus can drive the economy and business cycle strongly and quickly."
