S&P 500: Four reasons to doubt the instant hopes

Markets tend to get ahead of themselves and could rise in the hopes that Trump leaves the hospital. However, there are reasons to be cautious about the president’s condition, and if he stays for a few more days, it would disappoint investors and send stocks down, FXStreet’s analyst Yohay Elam reports.

Key quotes

“First, the doctors seemed evasive when talking about Trump’s lung scans. Has he developed pneumonia? Hopefully, the answer is no, but the lack of transparency is worrying.” 

“Second, Dr. Sean Conley, the president’s doctor, finally acknowledged that Trump received oxygen – on Saturday he only insisted that the president is not on oxygen right now. That also casts doubts about his condition. Late on Saturday, Trump released a video of himself from the hospital to lay these concerns to rest. Another spell of oxygen cannot be ruled out.”

“Third, Trump is receiving significant medications, including dexamethasone, a steroid that the Center for Disease Control (CDC) recommends administering to patients with ‘severe and critical COVID-19.’ While medics may be trying to throw everything at Patient Number One, the usage of steroids – which also suppress fever – can be worrying.” 

“Fourth, according to Dr. Conley, days 7-10 are the most critical ones and Trump could only be in days 5-8 – depending on when he was infected. He was initially taken to the hospital on Friday due to an ‘abundance of precaution’ and keeping him a few more days would seem only seem to be the minimum.”