Tech
Continuous Decline of Technology Shares
As of Friday, U.S. stocks fell, causing NASDAQ, Dow, and S&P 500 to pass a third week of declines. There was a market peak a little more than two weeks ago followed by this increasing decline which is due to these technology and growth stocks doing so well. In addition, Friday marked the day that markets are preparing for “quadruple witching”, entailing the quarterly end of U.S. stock options, stock index futures, and index option contracts. At the market close, this end also brings in an increased trading volume. According to strategists, investors are showing a pattern of a rotation out of technology sector stock and into other, different sectors. One senior investment strategist describes this as moving in the market from the biggest weights to the smallest weights.
COVID-19
Lockdowns and Vaccines
As the virus grows more prominent in the world, Israel has put in place a second lockdown during its Jewish holidays. This will affect its economic activity but has the purpose of slowing down its infection rate that is considered to be one of the highest in the world. Israel is also considered to be the first developed country to have a second lockdown, but it is believed that others will come to follow. Places such as Madrid, Spain have plans of testing a good amount of the population in order to avoid the necessity of another lockdown, but an official has said that it would be a disaster for Spain’s economy. The United Kingdom is also considering a possible second lockdown. Regarding the United States, this week showed how U.S. health officials are not on the same page about a COVID-19 vaccine, with CDC Director Robert Redfield predicting a widespread vaccine in the later half of 2021, the Department of Health and Human Services deputy of chief Paul Mango predicting a vaccine by the end of March 2021, and infectious disease official Dr. Fauci predicting a new normal far into 2021. The key takeaway from these predictions is that they are longer than the Trump administration’s vaccine projection, receiving criticism of the administration for supposedly putting heavy pressure on these health agencies. The President himself has said a vaccine should be ready within just four weeks.
Social Media
Banning TikTok and WeChat
Starting from Sunday night, the Commerce Department announced that users can expect TikTok and WeChat to be removed from all app stores. Users who already have these apps will still be able to use them until November 12th, when new restrictions can be expected. Additionally, the U.S. will block all new updates, which is expected to cause performance issues and functionality. Instagram has taken advantage of TikTok’s ultimate fall in the U.S. by creating a similar platform called Reels; however, the future still looks dim for popular platforms such as Instagram and Facebook in their efforts to achieve international aspirations, especially in China. Additionally, Oracle and ByteDance are currently working on an agreement to keep TikTok available in the U.S.
Politics
Trump’s Support to Puerto Rico’s Recovery
Trump’s administration has finally agreed to aid Puerto Rico with $11.6 billion in Federal Aid and FEMA grants three years after Hurricane Maria hit the Caribbean island. Its significance lies in how throughout Trump’s presidency he has consistently refused to aid Puerto Rico. This hurricane was a tragedy to this island, resulting in over 3,000 deaths. A democratic representative from New York has described Trump’s aid to Puerto Rico as “delayed, [it has] dragged its feet and resisted allocating these badly needed funds.” Regarding the upcoming presidential election, Trump has used his backlash to target Joe Biden saying that when Biden was a senator, he caused great harm to the island in a vote in 1996 that got rid of tax provision, something that put Puerto Rican companies at a disadvantage. Granted, Trump has little evidence to support this claim and his accusations towards this 2020 Democratic candidate, and Biden and his campaign are now focusing more on Puerto Rican constituents.
Law
Death of RBG
Ruth Bader Ginsburg was a prominent presence in our political culture as a justice of the Supreme Court since 1993 and fought hard for women’s rights and justice throughout her time in government. Her prominence is seen through movies written about her and her life as well as her appearance on t-shirts, memes, and even SNL skits, which is not common for Supreme Court justices. This largely affects U.S. politics as it is believed that Trump and Senate Majority Leader Mitch McConnell will try to add a conservative judge to replace her, giving them the upper hand and advantage. This is hypocritical in how McConnell refused to accept or consider Obama’s justice nominee back in 2016 due to it being an election year. Lastly, it goes against RBG’s last wish of not being replaced until a new president is elected this November. RBG’s death has taken a toll in American politics and will spark action before the election.
Written By: Holly Zhu
Works Cited
Carter, Eliza. “U.S. Officials Present Differing Projections on Vaccine Availability.” Morning Brew, 16 Sept. 2020, www.morningbrew.com/daily/stories/2020/09/16/us-officials-present-differing-projections-vaccine-availability?email=hollyzhu721%40gmail.com.
Freyman, Neal. “Israel Implements Second Lockdown During High Holidays.” Morning Brew, 18 Sept. 2020, www.morningbrew.com/daily/stories/2020/09/18/israel-implements-second-lockdown-high-holidays?email=hollyzhu721%40gmail.com.
Freyman, Neal. “Ruth Bader Ginsburg Dies at 87.” Morning Brew, 18 Sept. 2020, www.morningbrew.com/daily/stories/2020/09/19/ruth-bader-ginsburg-dies-87?email=hollyzhu721%40gmail.com.
Howell, Toby. “TikTok and WeChat Set to Be Banned from U.S. App Stores on Sunday Night.” Morning Brew, 18 Sept. 2020, www.morningbrew.com/daily/stories/2020/09/18/tiktok-wechat-set-banned-us-app-stores-sunday-night?email=hollyzhu721%40gmail.com.
Rivas, Teresa. “Stocks Are Slipping Because 'Quadruple Witching' Is Spooking the Market.” Barron's, Barrons, 18 Sept. 2020, www.barrons.com/articles/dow-joines-industrial-sp-500-stocks-are-slipipng-quadruple-witching-51600443787.
Rummler, Orion. “Trump Admin Will Grant $11.6 Billion to Puerto Rico's Recovery, Three Years after Hurricane Maria.” Axios, 18 Sept. 2020, www.axios.com/puerto-rico-trump-funding-9536db00-09b5-4e15-bca1-fa759ed20d9f.html?utm_source=morning_brew.
Valetkevitch, Caroline. “Wall Street Posts Third Week of Declines as Tech Slide Drags On.” Reuters, Thomson Reuters, 18 Sept. 2020, www.reuters.com/article/businessNews/idUSKBN2691LP.