The equity market has been on a tear and what is more remarkable is its strong rebound from the mayhem seen on Aug. 5. Former White House Communications Director Anthony Scaramucci on Thursday commented about the strong comeback by the market, delving into the potential reasons thereof.
What Happened: The Nasdaq Composite and the S&P 500 Index ended higher for a sixth straight session on Thursday, with earnings, slowing inflation, and evidence of the economy averting a hard landing driving traders to dip further into equities. The Aug. 5 market collapse was engendered by fears concerning growth and the unwinding of the yen carry trades, and the one-day sell-off dragged the major indices down by over 2.5% each.
Since the crash, the three averages have made decent gains. The Nasdaq Composite, S&P 500 and the Dow Industrials have gained 8.6%, 6.9% and 4,8%, respectively, from Aug. 5.
On Thursday, they rallied on the back of a decline in weekly jobless claims, a smaller-than-expected contraction in manufacturing activity in New York and Philadelphia and a robust retail sales reading.
The S&P 500 Index, a measure of broader market performance, is now perched at a three-week high.
Harris Connection? Scaramucci said the market’s rebound toward all-time highs may have to do with Democratic Presidential candidate Kamal Harris’ rising poll numbers. Polling analytics website FiveThirtyEight’s compilation of results from nationwide polls shows that Harris now led Republican candidate Donald Trump by 46.3%-43.5%.
“Investors are relieved America won’t have to live under an unstable wannabe autocrat,” the entrepreneur and founder of SkyBridge Capital said.
In a separate post, Scarmucci said, “Trump psychologically is coming to grips with losing this election. He is growing darker as a result of it. Will be a rough 81 days.”
Harris has yet to announce her economic agenda and hasn’t made public the potential policy she will likely pursue if she makes it to the White House. The vice president is due to deliver a major economic speech in North Carolina on Friday.
