Subscribe for free to the America First Report newsletter.
The coronavirus may be raging around the nation and across the globe, but stocks in the United States are soaring with the Dow Jones having its highest percentage gain in history. All domestic markets were up with impressive gains as the market correction forced by the coronavirus outbreak seems to have eased for now.
Prospects of interest rate drops helped global markets make gains as well going into Monday. But it is believed this is a temporary, albeit dramatic, boost in stocks as there are still fears the coronavirus will disrupt worldwide trade. According to The Daily Wire:
“The Dow Jones Industrial Average closed 1,293.96 points higher, or 5.1%, at 26,703.32,” CNBC reported. “The move on a percentage basis was the Dow’s biggest since March 2009. It was also the largest-ever points gain for the 30-stock average.”
“The S&P 500 climbed 4.6% — its best one-day performance since Dec. 26, 2018 — to close at 3,090.23,” CNBC added. “The Nasdaq Composite also had its best day since 2018, surging 4.5% to 8,952.16.”
Politico reported that the stock market’s strong day happened because “investors are increasingly anticipating that the Federal Reserve and other major central banks around the world will lower interest rates or take other steps to shield the global economy from the effects of the outbreak.”
Sam Stovall, chief investment strategist at CFRA, told Politico, “Investors have convinced themselves that global central banks will likely be even more accomodative in order to short-circuit any psychological damage.”
Investors have been waiting for indications the market correction had hit bottom and today’s news seems to mark that moment. That’s not to say the market won’t fluctuate swiftly over the next few weeks or longer depending on news of the coronavirus, but today’s surge showed it’s possible to find economic strength even in the face of real-world disaster.
Stock markets tend to rely on the news to determine direction up or down. As investors get antsy, they sell. As they get confident, they buy. Today’s surge shows the general sentiment is that economic prospects seem good despite the virus, thanks in large part to the degree of last week’s selloff.
The news will harm the Democrats’ talking point that the economy is too fragile with President Trump and Vice President Pence in charge of fighting the coronavirus. It seems many, at least in Wall Street, aren’t convinced by the left’s narrative.
American Conservative Movement
Join fellow patriots as we form a grassroots movement to advance the cause of conservatism. We have two priorities until election day: Stopping Democrats and supporting strong conservative candidates. We currently have 7500+ patriots with us in a very short time. If you are interested, please join us to receive updates.
[yikes-mailchimp form=”1″]
Covid variant BA.5 is spreading. It appears milder but much more contagious and evades natural immunity. Best to boost your immune system with new Z-Dtox and Z-Stack nutraceuticals from our dear friend, the late Dr. Vladimir Zelenko.