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Stock Market Jitters Don’t Endanger Economy Yet

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Recent market turmoil doesn’t mean the economy is about to be derailed, but rather that the recovery no longer needs low interest rates

The past few weeks of stock market turmoil don’t mean the economy is about to be derailed, but rather that the recovery is maturing andWhile the economy’s rebound from the pandemic-induced recession in spring 2020 has been strong, the stock

market’s has been spectacular. Between its trough in March 2020 and its all-time high Jan. 3, the S&P 500-stock index soared 114%. Now, despite the economy growing more in 2021 than at any time since 1984, the S&P 500 index is down about 8% from that peak.

 

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