UAH professor discusses economic impact of President Trump's coronavirus diagnosis

The diagnosis had a big impact on the stock market Friday.

Posted: Oct 3, 2020 12:21 AM

The Dow Jones Industrial Average was down more than 400 points at one point after President Donald Trump announced he and his wife, Melania, tested positive for coronavirus.

The University of Alabama in Huntsville economics professor Wafa Hakim said it was a result of initial reaction and uncertainty. 

"Markets don't like uncertainty right and we hope they make a full recovery, but sadly there's a possibility that anything can happen," Hakim said. 

Hakim said even though the major indexes dropped Friday, they did recover through the day.

"As more information came out, I think more people have settled down," Hakim said. 

She said the bigger impact of this news may not have to do with your bottom line. She said the president's positive test is a reminder that the virus has not gone away.

When it comes to Wall Street, she believes investors have already made adjustments to keep the market going.

"I wouldn't be surprised if we see the continuation of the same pattern, because at this point we've had enough experience with COVID to know how it affects different industries," Hakim said. 

The industry that is thriving is technology.

"I think if you look at the industries on average if tech stocks continue to do well, you wouldn't necessarily see a huge crash," Hakim said. "You are more likely to see movements come from an increase in volatility."

Friday, the U.S. government reports the U.S. economy added 661,000 jobs in September. That is the final jobs report before the election.

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