It’s counterintuitive. At a time of roiling civil unrest and an unprecedented economic crisis, stock prices are chugging along quite nicely. In fact,
It’s counterintuitive.
At a time of roiling civil unrest and an unprecedented economic crisis, stock prices are chugging along quite nicely. In fact, they have rebounded sharply since the dark days of March.
The Dow Jones Industrial Average, which lost 37% of its value between Feb. 12 and March 23, has now regained more than two-thirds of the ground it lost. Same with the broader S&P 500 index.
Or, as President Trump tweeted last week, „Stock Market up BIG…. The Transition to Greatness has started, ahead of schedule.“
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It’s a staggering turnaround since the early days of the coronavirus lockdowns, when the Dow was routinely falling by 1,000 points or more. On March 16, the most widely quoted stock index had its worst single-day point drop on record, falling 2,997 points, or 13%.
What gives?
Some of the rebound has been driven by a few big tech companies such as Apple and Microsoft, which have returned to their pre-pandemic levels.
„These companies … have developed just an unbelievable sort of character that just does not exist among the broader stock market,“ says Jim Paulsen, chief investment strategist at the Leuthold Group.
