Trading has been choppy this week as investors balance optimism that the economy is on the path to recovery as more businesses reopen against concerns that a resurgence in infections could force another round of shutdowns. Several reports out this week gave Wall Street reason for optimism.
Economists at Bank of America now expect the U.S. economy to shrink 5.7% this year, a severe contraction but not as bad as their earlier forecast for an 8.1% plunge. It was huge efforts by the Fed, along with spending by Congress, that helped the stock market turn around from its nearly 34% plunge in March. More recently, it’s been hopes that the worst of the recession may have already passed that have pushed the market higher.
In Europe, the German DAX returned 0.4%, and France’s CAC 40 rose 0.4%. The FTSE 100 in London added 1.1%.
Time to sell. Next one will be worse.
Need to add “With a huge infusion of cash from the Fed.......” to that headline.
This is why we’re seeing a major increase of covid reporting.
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