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Economic Stimulus

What happens to the stock market if Congress doesn't approve a second round of stimulus?

Answers and Comments

Richard Stumpf
August 12, 2020

Most likely we will see a major downturn.  Every article you read about the rebound in the stock market talks about how the stimulus money is what is driving it.  It certainly isn't the rebounding economy!  So if the stimulus doesn't come through, the stock market will suffer.

A Michael Adams
October 20, 2020

If there is a blue wave, and it appears it is going to be, the market should rebound. If the House, the Senate and the White House are all Democrat look for a large stimulus bill before the end of Jamuary. I would guess most fund managers and institutional investors will also figure that out and soon after November 4 will be assessing which stocks will benefit the most. Since June with the probability of Biden being elected the blue stocks have been rising while the red stocks have been falling. The renewable energy, infrastructure stocks are rising; the fossil fuel stocks have been falling. The question is will there be a blue wave. Smart money seems to be thinking there will be. 

Karl Krause