A big concern in recent weeks surrounding the COVID-19 pandemic has been how the economy and stock market is reacting. In the week of March 23, stocks rose tremendously, at one point “hitting 20% off the recent lows,” according to CNBC.com.
Even with negative news still circulating about the virus, the markets are rising in spite of it.
“When [the market] fully prices in all of the awful stuff out there, the selling will stop even if current conditions look bleak,” according to Jeff Cox’s March 26 CNBC article.
Indexes such as the Dow Jones Industrial Average, Nasdaq and S&P 500 hold a compilation of stocks and allow investors to invest and track companies. On March 26, Dow saw its largest three-day surge since 1931, Nasdaq rose 5.6% and S&P 500 also saw a three-day rise. Stocks in Asia and Australia also recorded early trade raises.
Another factor that has been affecting markets is the largest emergency aid package in U.S. history: the Stimulus package. On March 2, the Senate approved a $2 trillion stimulus package to help the economy during the pandemic. The bill was pushed through with bipartisan support and a unanimous vote of 96-0, according to Manu Raju’s March 26 CNN article. The bill was passed by the House of Representatives on March 27 and then signed by President Donald Trump.
Roy Franklin, a freshmen business management major, is an investor in the stock market and has witnessed the market fall and rise in recent weeks.
“I have definitely noticed a change in stock market prices,” Franklin said. “A week ago stocks were at their lowest low and are now finally trending back up.”
March 26 stock updates:
- Dow closed above 22,000 for the first time since March 13.
- S&P closed up 6.24% for the third day straight of positive numbers.
- 11 out of 11 sectors were positive (sectors are energy, basic materials, industrials, consumer discretionary, consumer staples, healthcare, financial, information technology, communications, utilities and real estate).
- S&P is up 14.11%, which is on pace for its best week since 1938.