Trump To Invoke Stafford Act, Declare National Emergency

It’s been another wild day on Wall Street, featuring a strong open followed by robust selling. At press time (about 12:45 PM EST), the DJIA DOW (+435), S&P 500 SPX (+55), and NASDAQ (+155) are quickly giving back early gains. The key market driver is once again the COVID-19 virus and pending economic fallout.

Earlier today, mainstream media reports began surfacing that President Trump is due to invoke the Stafford Act and declare a national emergency. According to Bloomberg, sources “close” to the president expect the announcement to be made at a 3:00 PM EST presser. 

Ultimately, it’s a stretch to believe that invoking the Stafford Act will bring on a major market move. But, as we have seen all week long, anything can happen.

S&P 500 Falters Ahead Of Trump’s Stafford Act Announcement

March E-mini S&P 500 futures have been on a rollercoaster ride since yesterday’s electronic open. Traders initially sold E-mini S&Ps before going limit-up during the U.S. overnight. Now, most of those gains are gone with values trading near the 2545.00 level.

Overview: Currently, we are seeing a near 50% volume split between the March and June E-mini S&P 500 futures contracts. This has been a peculiar rollover, as the near-month March issue continues to hold on to a slight volume edge over June.

Right now, the key level for the S&P 500 is the psychological barrier of 2500.00. This area has consistently drawn heavy action from both buyers and sellers. Where the S&P 500 closes the week will tell the tale. If the S&P 500 can close above 2500.00 following Trump invoking the Stafford Act, there is hope for U.S. equities. If not, we may be looking at another Black Monday on Wall Street.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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