COVID-19 Crisis In The United States And Previous Performances Of The Stock Market Indexes.
Since the outbreak of coronavirus began, a lot has changed especially in the global stock markets. Various businesses are not open in efforts of containing the spread of the disease. The stock market in the United States went down and its performance was poor.
At the beginning of the epidemic the Dow Jones, Nasdaq Composite and S&P 500 recorded a drop in performance. Investors shun from trading in stocks as the returns were not very pleasant.
Coronavirus has affected the United States badly as millions of people have lost their jobs. According to recent information, the cases on the record are over 340000 and the death toll reads at 10000.
Current Performance Of The Stock Market Indexes.
The Dow Jones is reporting positive performance amid the crisis. It gained over 800 points besides yesterday’s gains. This is something that needs recognition since the performance in the stock market has been poor during March. The S&P 500 and Nasdaq Composite also show positive growth by having better gains in the stock market.
As of this evening, the Russell 2000 index also shows some slight improvements. Besides the NYSE Arca Oil index shows gains of about 4-5%.
Dow Jones seems to have on record its 3rd biggest gain of almost 1600 points. The S&P 500 increases by 7% since the second week of March. Besides, the S&P 500 rebound over 19% from its 1-year fall in March. The Volatility index declined by 3% to over 40% while the VIX records 82.69%
Reasons Likely To Cause The Positive Move.
The coronavirus cases in the region of Asia seem to be lowering and this means a positive change to Asia’s economic sector. South Korea medical assistants record less than 50 new coronavirus cases.
In China, where huge numbers of deaths were occurring in the first months, no new deaths are on record as of Monday this week. During the first phase of the outbreak, countries in Asia especially the two mentioned were in great danger because of the virus.
Donald Trump And Marko Kolanovic Views.
The United States President says that he believes there is much hope after this pandemic end. He repeats the World Health Organization remarks concerning the speeded research. This research involves coming up with a suitable vaccine and a specific treatment.
Marko says, “the climax in New York is likely looming as opposed to a month out. Huge data showed early on that social distancing is working whole.”
The Bear And Bull Markets.
The bear market emerges before an economic contraction gets a hold of the situation. It also involves a situation whereby the prices of shares are falling and hence investors should sell the shares. The bull market experiences an upward trend, and an investor is optimistic about the state of a particular market.
The financial opinions believe that the current stocks are still in the trend-down market. The S&P 500 is over 20% off its top record.
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