The worst seems to be over, attention shifted to a restart of the US economy
Stock indices ended yesterday’s trading day at a new high against the March lows. The Dow Jones, S&P 500 and Russell 2000 Small-Cap indices left the bear market by bouncing from the lowest March lows of at least 20%. The Dow is now up 25.8%, S&P up 23.4% and Russell up 22.3%. The Nasdaq index is “only” 19.4% higher since its March lows, but only 0.49% is missing to leave the bear market and open a new bull market.
America receives better news on the development of coronavirus infection. While the number of infected as well as mortality continues to rise, the rate of growth of newly infected shows signs of slowing, and so the attention of traders has shifted to the question of how and when the US will reopen its economy. The White House indicated last week that this would happen “continuously” starting in the next 4-8 weeks.
When the US economy finally reopens, when people return to work and consumers and businesses start spending money again, stocks are expected to skyrocket as economic demand eases.
Add to that more than $ 8 trillion spent on the economy by monetary and fiscal stimulus or almost zero interest rates, and the coming economic recovery will quite possibly be a boom like you’ve never seen before.