Stock Rally & Record Infection Numbers
News of the Federal Reserve rescue plan continuation, positive US retail sales numbers, and investors’ general hopes for a swift economic recovery have given the market a much-needed boost last week, pushing stock prices well up.
Nevertheless, the number of newly confirmed coronavirus cases continues to increase, raising its own questions about the recovery process.
The US reported more than 30,000 additional coronavirus cases on Friday, the highest number of single-day infections since May 1st. Nevada, Florida, California and Arizona have also reported record-high infections over the course of 24h.
Although many fear the market is underestimating the potential second wave of infections, one has to be fair that the stock rally did have a certain negative response Friday, as Apple announced it's closing some stores in Arizona, Florida and a few other states due to an increasing number of cases.
“I do think that perhaps the market has gone past it’s recovery ‘straight up’ phase, as investors realized coronavirus (COVID-19) was not a world ender,” said Vito Racanelli, market intelligence analyst at Fundstrat Global Advisors. “But the data remains mixed and COVID-19 fear remains strong, and it’s understandable.
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