News By/Courtesy: Athul Joseph | 05 Jun 2020 19:54pm IST

The United States is going through its worst race crisis since the death of Martin  Luther King, Jr in 1968 but despite all the protest riots and looting stores among several cities, it doesn’t seem to affect the stock market. The pandemic along with the pandemic which took the lives of almost 100,000 Americans, more than forty million people filed for employment and the prospective trade war between the US and China. The United States has had better times yet the stock market seems to boom its way up. The S&P 500 (The S&P 500, or simply the S&P, is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices, and many consider it to be one of the best representations of the U.S. stock market) showed its highest level of elevation in the past three months. The major reasons for this spike are the unprecedented stimulus from the Federal Reserve System, and investors not wanting to miss out on monster returns once the economy recovers.

Despite these skyrocketing numbers the stock market in its entirety is not the economy of a country but a part of it, it’s like saying my brain is part of my body and in that sense, the stock market is part of the economy. It is safe to say that the US economy is not broke like what happened during the great recession during the late 2000s, the pathogen spread has brought the otherwise normally working economy into a standstill and the only way to solve the economic crisis is to solve the public health crisis. Despite that backdrop, the benchmark S&P 500 index has soared a file 40% within the past 50 days, even as the Nasdaq closed much less than 20% low its all-time excessive on Wednesday. The incongruous stock market place rally likely reflects optimism around businesses along with Amazon, Peloton, and Zoom if protests, curfews, and a potential 2nd wave of infections lead to humans spending greater time at home. It will also be a product of unprecedented government and central-bank support, and a lack of compelling alternatives to equities, experts say.

 THIS ARTICLE DOES NOT INTEND TO HURT THE SENTIMENTS OF ANY INDIVIDUAL, COMMUNITY, SECT, OR RELIGION ETCETERA. THIS ARTICLE IS BASED PURELY ON THE AUTHOR'S PERSONAL VIEWS AND OPINIONS IN THE EXERCISE OF THE FUNDAMENTAL RIGHT GUARANTEED UNDER ARTICLE 19(1)(A) AND OTHER RELATED LAWS BEING FORCE IN INDIA, FOR THE TIME BEING. 

Section Editor: Pushpit Singh | 05 Jun 2020 19:59pm IST


Tags : stock market growth

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