A record number of Americans just lost their jobs. Why is the market up?
all opened higher on Friday, with the Dow surging more than 300 points. Since the March 23 low, all three averages have bounced more than 30%.While the debate among health experts about how and when economies should reopen is ongoing, some states have already started easing shelter-in-place measures. A number of states including Florida began phase one reopenings on Monday.
"If job losses are concentrated in this segment [furlough], it would increase the scope for a more rapid labor market recovery when the economy eventually rebounds ," he wrote in a note to clients ahead of the report.At first the market sell-off was broad in nature as the uncertainty surrounding the coronavirus sent the major averages tumbling into a bear market at the fastest pace on record.
That said, Saccocia said a more cautious tone is warranted, since she believes it's a "misconception" that demand for consumer services will return quickly once government edicts lift.As the coronavirus wreaked havoc on markets, governments and central banks around the world stepped in in an effort to prop up prices.
"We estimate the impact of Fed easing in both rates and credit more than compensate for the temporary hit to corporate earnings when valuing the US market via discounted earnings," he added.As part of its stimulus measures, the Federal Reserve in March slashed interest rates to near zero. At the central bank's most recent meeting at the end of April, it pledged to keep rates at historic lows until the economy recovers.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Postpartum sex: Why you don't want it—and why that's OKA baby changes everything—including, oftentimes, your interest in sex. Still, the goal isn't to get the 'old you' back. It's to figure out who you are now.
Read more »
Why Disney+ is now a blessing and a burden for DisneyThe growth of Disney's streaming service Disney+ comes at major cost for the company, which is seeing overall profits plunge because of the coronavirus pandemic.
Read more »
Why Cara Delevingne and Ashley Benson Reportedly Broke UpThey were together for about two years.
Read more »
6 Reasons Why COVID-19 Is Nothing Like the FluCOVID-19 and the flu are entirely different illnesses. Here's why we need to start treating them that way, says nathanlents
Read more »
4 myths I believed about life insurance, and why I bought a policy - Business InsiderMany millennials didn't learn much about life insurance growing up. But as a Black single mom, getting insurance was essential.
Read more »
Why you need to wear the damn maskEven if you think the government's response to the virus is an overreaction you should still wear a mask, writes Catherine Pearlman. You may be asymptomatic but have Covid-19, and might make someone sick. The nation's leaders--all of them--need to get this out, loud and clear. Do you want business and the economy to eventually come back-- or don't you?
Read more »