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Stock Market Outlook: Guns, Tariffs, Disney Earnings & Brexit

Last Updated September 30, 2020 6:32 PM

By Francois Aure

The S&P 500 faces a plethora of risks this week as domestic and international concerns pile up for the US stock market. | Source: AP Photo/Richard Drew

The S&P 500 could face a rocky week ahead after another round of Trump trade war tweets over the weekend. However, investors have more than just the White House’s ongoing tariff shenanigans to worry about when the bell rings on Monday.

The president’s response to a horrific run of mass shootings in California, Texas, and Ohio will also be in focus for stocks, due to the impact on gun manufacturers and the 2020 election.

Throw in Disney earnings on Tuesday and Brexit shenanigans in Europe to set the stage for a potentially wild week for the stock market.

Trump’s Response to Mass Shootings Significant for Stock Market This Week

S&P 500, Stock Market — Trump’s trade war tweeting battered the S&P 500 into the close of trade last week. But that’s not the only threat moving forward. | Source: Yahoo Finance

The US is in mourning after waking up to another mass shooting overnight in Dayton, Ohio. Given that a mass shooting in El Paso that killed 20 occurred less than 24 hours ago, the potential for this to reverberate into stock markets is evident.

God bless the people of El Paso, Texas. God bless the people of Dayton, Ohio.

— Donald J. Trump (@realDonaldTrump) August 4, 2019

Donald Trump’s response to these events will be watched closely by investors in public gun manufacturers, like Smith & Wesson owner American Outdoor Brands (AOBC ) and Vista Outdoor (VSTO ).

Democratic polling and response to the tragedies will affect the broader stock market, as the probability of a Trump victory in 2020 decreasing is mostly considered bearish for the S&P 500 and other US indices.

S&P 500: Disney Posts Earnings on Tuesday, CVS on Wednesday

disney earnings — Disney will report earnings this week. | Source: Shutterstock

Though most of the high-profile earnings reports have passed this summer, there are still several significant releases for the S&P 500.

The Walt Disney Company (DIS) on Tuesday promises to be the headliner, with a good deal of attention on its new streaming service. CVS will report earnings on Wednesday .

Brexit Still a Risk to Global Stocks

boris johnson, brexit — Brexit could weigh on global stock indices. | Source: Shutterstock

A final and serious factor to consider for global risk conditions is the ongoing chaos in Europe over Brexit.

Despite months of wrangling, the world’s second-largest economic area (EU) and a top-5 global economy (UK) are still no closer to agreeing on a withdrawal agreement. With plenty of talk about a no-confidence vote in Boris Johnson , damage to global risk sentiment from any additional setbacks would likely harm stock markets, including the S&P 500.

With this explosive cocktail of global and domestic risks, all signs point to another frantic week of volatile trading in US stocks this week.