With headline-scanning algos focused only on soundbites related any new stimulus deal and changes in the probability of a fiscal stimulus getting done soon, moments ago stocks were whiplashed when moments ago Senate majority leader Mitch McConnell said during an event in Kentucky that "we do need another Covid-19 aid package", but then immediately poured cold water on "optimism" when he warned that a new stimulus deal is "unlikely in the next three weeks."
New stimulus deal "unlikely in the next three weeks" McConnell saying in event in KY— Erica Werner (@ericawerner) October 9, 2020
McConnell also said that there's "widespread agreement airlines need aid" and added that the economy is struggling to get back to normal.
The KY Senator then reiterated that he hasn't seen Trump in person since August but they speak almost every day. "The telephone was invented in the late part of the 19th century and it works quite well."
McConnell also refused to say when he was last tested for covid. "Have I ever been tested? Yeah. But am I going to make a daily report? No. It's not necessary."
Of all those, algos only cared about the first, and amid some initial confusion...
... sent the Russell 2000 - which had benefited in recent days amid surging "stimulus optimism" -lower...
... while the dollar posted a modest bounce.