Once again it’s Friday and the trading week’s end is in sight. Just over the halfway point of the U.S. session, the DJIA DOW (-145), S&P 500 SPX (-15), and NASDAQ (-22) have reversed off session highs. Going into the weekend break, the spread of COVID-19 and American politics are driving confused sentiment toward equities. 

Today’s U.S. economic calendar is relatively bare. However, Jerome Powell is scheduled to speak publicly today at 1:00 PM EST. Not a whole lot is expected, but anything can happen when a FED Chairman takes the stage. Here are the two key underpinnings of this morning’s action:

• Politics: This week has brought a collection of polling data that heavily favors Democratic candidate Joe Biden. According to a Fox News poll, Biden has opened up a 12-point lead over the presidential incumbent Donald Trump. In addition, betting odds have Trump at nearly 1.5/1 underdog. While Saturday’s rally in Oklahoma is expected to give Trump a boost, the race for the presidency has taken an unexpected turn.
• COVID-19: Growing concerns that a COVID-19 “second wave” is gaining steam are creating palpable investor angst. Reports of new infections spiking in Florida, Texas, and Arizona are injecting fresh uncertainty into the markets. 

Ultimately, both of these issues will be premier equities market drivers for the rest of 2020. While other factors are sure to play into valuations, these two are worth monitoring on a daily basis.

Equities Reverse From Early Gains

After a strong open, U.S stocks have fallen from intraday highs. For the September E-mini NASDAQ, prices are consolidating near the 10,000.00 handle.

Overview: This afternoon’s close is going to be a key for the U.S. equities markets. As of this writing, values are all over the place as concerns over a COVID-19 second wave have investors taking a cautious stance. If the markets sell-off ahead of the bell, then be on the lookout for a timid Monday open.