Rising COVID-19 cases spoil the show for the markets on Wednesday. The U.S. has reported the single biggest spike on June 24 beating all previous records and thereby putting the chances of economic recovery under pressure.
The U.S. markets continue to remain volatile amidst the new industrial output report and the jobless report releasing on Thursday. The total COVID-19 infected cases in the U.S. have passed over 200,000 with over 5,000 deaths.
Well, the jobless figures and the economic outlook seem pretty bleak for the coming few quarters amid coronavirus, here is how the market is reacting to the situation. Is any further damage already priced-in?
The Dow Jones Industrial Average is leading the pack on a bull rally, after gaining 1,300 points as of March 26. Although still below last year’s lows, the 6.38% gain is the biggest 3-day surge ever recorded since 1931
After the FED, Treasury and key persons in the American government made a hefty of clean, effective moves, the stock market looks much better.
The 10-year and 30-year Treasury bond yields are currently at their historic lows. Tuesday’s FED rate cuts have surprised traders as investors are now leaving stocks aside and moving for safer bonds.
TSLA, SPCE and PLUG stocks are among those that may be rallying due to speculative trading. This phenomenon is known as a ‘late-cycle’ market.