- The lack of progress in reaching an agreement on US fiscal stimulus is the biggest “catalyst” of market volatility for stocks right now, National Securities’ chief market strategist Art Hogan told CNBC Wednesday.
- He said: “The No. 1 catalyst in this market causing the most volatility is the path of fiscal policy and whether we can get that out of the Beltway.”
- Hogan said markets are less concerned about the US election result.
- US president Donald Trump signaled an end to stimulus talks this week, but later called for a standalone bill to help the airline industry.
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The gridlock in Washington DC between US lawmakers over a new economic stimulus package is the biggest catalyst for market volatility, rather than the upcoming election, National Securities’ chief market strategist Art Hogan told CNBC’s “Trading Nation” Wednesday.
“The number one catalyst in this market causing the most volatility is the path of fiscal policy and whether we can get that out of the Beltway,” Hogan said. “We need more fiscal policy stimulus. We’ve heard that from the Fed. We’ve certainly heard that from economists.”
US president Donald Trump ended talks between Democrats and Republicans until after the election on Tuesday. He later urged lawmakers to approve $1,200 stimulus checks for American taxpayers, small business aid, and direct assistance to airlines to prevent layoffs.
Democrats and Republicans have been stuck in a stalemate over the size of the next fiscal plan since July, although House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have signaled that they have made some progress in recent days.
But even though a full fledged fiscal plan is unlikely before the US election, markets watchers have been welcoming the prospects for a standalone bill for