After the Senate passed a $2 trillion economic relief package, the stock market has increased more than 1,300 bps in three days. Companies like Netflix, Google, Amazon, Facebook, and Walgreens have all jumped dramatically. There is no surprise that these companies are on the rise since many people are using these companies more because of the virus. The Dow and S&P 500 have both increased for the past 3 days, with the Dow being up by more than 20%. Even though this is a huge improvement since the LARGE drop since COVID-19 has come into the U.S., the main thing on peoples mind is if this increase is going to continue, or if this will just lead to another dramatic decrease. Many portfolios are getting hit with this drop in the economy. Do you think that the market will continue to increase, or do you think that it will once again decrease as the pandemic continues to hit the U.S.?
https://www.cnbc.com/2020/03/25/stock-market-futures-open-to-close-news.html
4 comments:
I think it all depends with how long the pandemic lasts. If things begin to worsen, I believe the economy will be hit with another drop. The relief package definitely increased consumer confidence, but it will only last so long. I expect the pandemic to last at least another month or 2 because we have not even hit the peak of coronavirus cases. So in the future, we will probably see another drop.
I agree with Lucas, I do believe that there will be a further slump since things are going to get worse. The number of cases and deaths are exponentially increasing, and with that the markets will suffer more and more. Hence, the market will eventually decrease.
I think there will be a drop but I don't think it will be as drastic as it has been. This ordeal is predicted to last a while longer and everything is going to come down to how long this all last. I don't think we are in for anything sever, but we defiantly are going to have to ride this one out.
I agree that there will be a slowing of the increase, which will lead to another decrease as the virus continues through April and potentially into May and longer. If there is another aid package approved and implemented by the government, then another increase will likely occur. However, it is unclear if this will take place.
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