President Trump has dashed hopes of lawmakers agreeing on a second round of Coronavirus stimulus this month. In a statement on Tuesday, the President said that all negotiations would be halted until after the election.

The announcement drew criticism from both sides of the political spectrum, and it sent the stock market into freefall yesterday.

Markets Fell After President’s Announcement

In an abrupt move that took analysts by surprise, the President said that “I have instructed my representatives to stop negotiation until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.”

While unemployment is down since the early days of the Pandemic, millions of Americans are still out of work, including 3.8 million who have lost their jobs permanently in recent weeks. The unemployment rate is now close to 8.3%, the highest it has ever been before an election.

Stock markets fell steeply after the announcement. The NASDAQ was down by almost 180 points, and the Dow Jones was down almost 400 points at the close of the markets on Tuesday.

Stimulus Checks May Still be Sent

The President sent a follow-up tweet late on Tuesday night saying that he would be willing to pass a standalone bill for stimulus checks for households.

Trump said that “If I am sent a Stand Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY. I am ready to sign right now. Are you listening Nancy?”

While Trump directly called out House Speaker Nancy Pelosi in the Tweet, any potential bill would have to pass in the Republican-controlled senate. With Senators set to go through the process of confirming a new Supreme Court Justice, it seems unlikely that stimulus funding would be passed ahead of the election.

Tension is Heating Up Ahead of the Election

President Trump is facing criticism from within his party after the recent announcement. Alaskan Senator Lisa Murkowski said yesterday that Congress should continue to strive towards a stimulus package.

Maine Senator Susan Collins released a statement saying that “Waiting until after the election to reach an agreement on the next Covid-19 relief package is a huge mistake.”

These latest developments threaten the markets ahead of an election where volatility was already expected. Investors should wait for clarification on the President’s position before speculating on stocks.