Finance
Markets Were Already Braced for Chaos—and Then Came the Diagnosis
Traders worried about the election have been buying hedges against volatility.
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The news that President Donald Trump and his wife, Melania, have contracted Covid-19 brings a dizzying array of possibilities for the nation—and the financial markets.
It’s the type of uncertainty-inducing event that can act like a gut punch. But in this case, many stock investors were already in a defensive crouch. In options and futures, demand for hedges to protect against sudden bouts of volatility has been strong. Traders say that’s in case Trump refuses to accept a loss in November, a prospect he reinforced in Tuesday night’s debate.