World markets plummet after Trump tests positive for COVID-19

U.S. stock futures are down this morning in premarket trading, as the world reacts to news that President Donald Trump has tested positive for COVID-19.

In the United States, S&P futures plummeted 1.31%, the Nasdaq futures were down 1.95%, and the Dow futures down 1.29%.

World markets also are seeing a major drop. Japan’s Nikkei is down 0.67%, England’s FTSE 100 is down 0.870%, France’s CAC 40 Index is down 1.96%, and Germany’s DAX is down 1.04%.

In contrast, Hong Kong’s Hang Seng is up 0.79%.

The Nikkei and the Hang Seng are currently closed.

The U.S. markets open at 9:30 a.m. ET.

Trump announced Thursday night that he and First Lady Melania Trump had tested positive. He said they planned to quarantine at the White House.

“Word that the president and first lady have tested positive for COVID-19 marks the addition of further uncertainty when it was already abundant, typically toxic for financial markets,” says Mark Hamrick, Bankrate.com’s senior economic analyst. “Aside from the personal implications for the first family, this and any related developments will likely be key drivers for stock investors in the near term. Longer-term and outside the news cycle, the typical drivers will remain most relevant, including earnings, dividends, and interest rates. As is always the case, long-term investors need to try to look through the near-term fog.”

The Trump news came several hours after White House senior adviser Hope Hicks had tested positive.

Democratic presidential candidate Joe Biden will get tested for COVID-19 this morning, The Hill reports.

The two men were near each other on Tuesday night during the first presidential debate, held at Case Western Reserve University in Cleveland.