By Stanley White and Pete Schroeder

TOKYO/WASHINGTON, Oct 2 (Reuters)U.S. stock futures dipped on Friday after President Donald Trump said he and his wife will quarantine after a close aide tested positive for the coronavirus.

Futures for the S&P 500 ESc1 fell 0.39% in Asian trading after the nwes, extending earlier losses, while Treasury yields remained broadly unchanged.

The U.S. dollar held steady against most currencies, but it rose against the Australian and New Zealand dollars in a sign of risk aversion.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.15%. Australia’s S&P/ASX 200 index .AXJO fell 0.68% as a decline in oil and copper prices weighed on the resources sector.

Japan’s Nikkei 225 index .N225 was up 0.15% after the Tokyo Stock Exchange (TSE) resumed normal trading after its worst-ever outage brought the world’s third-largest equity market to a standstill.

Trump said on Twitter that he and his wife had been tested for coronavirus after Hope Hicks, a senior advisor who recently traveled with the president, tested positive.

If Trump also tested positive, that could cause a new wave of market volatility as investors brace for a hotly-contested presidential election in November.

“It depends on how serious this becomes, and whether or not Trump is actually infected,” said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management.

“The most important thing is we were already worried about an uncertain outcome from the election, and this adds to the uncertainty.”

In addition, a spate of data, including jobless claims and consumer spending, suggested that the plodding U.S. economic recovery could be losing steam.

Futures for the tech-heavy Nasdaq NQc1 also fell 0.4% in Asian trading. The benchmark 10-year Treasury yield was little changed at 0.6709%.

There was a brief jump in trading volumes

U.S. stock futures were flat in overnight trading, as investors braced for the start of the fourth quarter with hopes of fiscal stimulus. 

Dow futures rose 45 points. S&P 500 futures and Nasdaq 100 futures ticked up 0.18% and 0.12%, respectively. 

The House of Representatives delayed the vote on a $2.2 trillion rescue package on Wednesday evening after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin failed to strike a coronavirus aid deal; however, the pair said the conversation would continue. 

The Federal Reserve said Wednesday it is extending the restrictions on big bank dividends and buybacks through the fourth quarter. Banks dipped in extended trading following the central bank’s announcement. 

On Wednesday, the Dow Jones Industrial Average climbed more than 300 points, after being up more than 550 points on hopes the White House and Senate would agree to a second stimulus package.

The S&P 500 also registered a gain, climbing more than 0.8%. The Nasdaq Composite rose 0.75%, helped by gains in Netflix and Microsoft. 

Stocks that hinge on economic recovery — like airlines and cruise lines — lost steam following the negative stimulus headlines. Airlines are on the cusp of laying off tens of thousands of employees without further government support. 

“Given lawmakers failure to make any progress, there is further doubt that any agreement can be reached prior to the election on November thirds,” Aviva Investors’ head of U.S. equities Susan Schmidt told CNBC. “Investors are entering into the final quarter of the year expecting continued volatility and recognizing that not-owning the winners this year has had a detrimental impact on their portfolios.” 

Despite Wednesday’s rally, stocks rounded out September with losses, the first month of decline since March. 

The Dow Jones Industrial Average lost nearly 2.3% in September, a typically weak month for

The Wednesday Market Minute

  • Global stocks slide following a chaotic Presidential debate during which President Donald Trump once again refused to commit to a peaceful transition of power.
  • President Trump, and former Vice President Joe Biden traded insults and interruptions in an unedifying 90 minute spectacle that likely changed the minds of very few voters.
  • Germany is using targeted restrictions to tame a resurgent coronavirus, and hopes to avoid a nation-wide lockdown, as the pandemic continues to spread across Europe.
  • Oil prices drift lower as the dollar rallies in safe-haven trading ahead of EIA data on domestic inventory at 10:30 am Eastern time.
  • U.S. equity futures suggest a modestly firmer open on Wall Street, but still the first monthly loss since March, after ADP jobs data  and a final Q2 GDP reading.

U.S. equity futures turned higher Wednesday, while the dollar pushed higher and safe-haven assets rallied, as markets reacted to a bitter and chaotic Presidential debate that once again raised the prospect of a contested election in November.

Payroll processing firm ADP’s September report said private sector employers added nearly three quarters of a million new jobs in September, setting up a stronger-than-expected reading of non-farm payrolls later this week.

Markets also bounced higher following reports of leaked data showing the September Chicago PMI reading pegged at 62.4, more than 10 points ahead of the Street consensus forecast.

President Donald Trump and former Vice President Joe Biden traded insults, jabs, interruptions and exasperation in an unedifying televised clash that is unlikely to change the minds of the few voters that managed to sit through the 90 minute spectacle.

While neither candidate was able to land more than a glancing blow on his opponent, and few if any policy ambitions were revealed, President Trump did once again raise the prospect