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S&P 500 decline extends to 30 points. It’s all politics but not necessarily stimulus

Fresh lows of the day

The Mnuchin-Pelosi talks are scheduled for an hour from now and that makes it less-likely that we will get an answer before the close. That creates some after-hours risks for US equities and some last-minute guessing.

I’m not sure today’s moves is all about stimulus. The best-case scenario for the market — at least in the short term — is a sweep by one party. I can’t envision Republicans winning the House so it would have to be a blue wave. But there is a shift in the betting market in the past few days towards Trump and that increases the odds he will win or Republicans will hold the Senate.

Trump poll odds

 
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