Stock Market Ends Tall Amid Chaos and Uncertainty
The stock market seems to have been undeterred in its conquest to be built up back to its pre- Covid 19 conditions. As many states reopen, the economy seems to be limping its way to stability and the stock markets are a reflection of it. The markets saw an all time high closing this session compared to the previous ones. Major yardstick indices reported a large increase in points ending at their best since March 4 2020.
In spite of the riots that erupted within the country after the death of George Floyd at the hands of the Minneapolis police, the markets remained optimistic. Sudden breakout of protests that started peacefully but ended with major clashes with authorities as well as the imposing of curfews by many major cities, did not halt the upwards trend of the stock exchange. In addition, regardless of the ever growing trade tension between US and China, fuelled recently by China amending Hong Kong’s status as a separate territory in economic and trade matters, coupled with US threatening to introduce new tariffs on China, could not mange to falter the rising development of the stock market.
Both The Dow Jones Industrial Average (US:DJIA) and the Standard and Poor’s S&P 500 (US:SPX) obtained a heightened finish since the start of the corona virus crisis. In accordance with Dow Jones Market Data, S&P 500 claimed a 1.4% rise reaching 3,112.8 , whereas DJIA garnered a 527.24 points, or 2.1% increase, ending at 26,269.89. Moreover, The Nasdaq Composite Index (US:COMP) ascended by 74.54 points, or 0.8%, closing in at 9,682.91. All three indices reflected the market’s views in relation to the protests and unrest that has gripped US as well as its positive prospects of better future economic conditions.
The upbeat markets came into being due the decrease in the number of new Covid -19 cases in many countries around the world. The continuous effort of frontline workers against the virus enabled the reduction in corona virus patients in the United States, also. Trade resumed globally after the massive pandemic shutdown and many small to large enterprises reopened after about three months of inactivity. Even the New York Stock Exchange opened its doors for on the floor trading after being closed due to the threat of the pandemic.
Analysts believe much of the investors’ confidence could be attributed to the injection of funds by the government in the economy. The fed and treasury have offered low interest bearing loans to several small and large businesses as well as having reduced the short term rates to almost nil. These measures were taken at a time when the economy staggered to remain on its feet. By feeding trillions of dollars the government managed to pull the economy from its ditches and release the stress of an otherwise tensed stock market.
Although, the stock markets have managed to show an increase in this session, many financial advisors see this rise as non reliant as nothing can be said with certainty during these harsh corona virus times.