(PoliticalLookout.Com)- Up and down the stock market goes. Where it stops, nobody knows.
After getting walloped in the last few weeks because of the coronavirus outbreak and the devastating effects it has had on businesses from Main Street to Wall Street, stocks rose across the board again on Thursday en route to recovering 20% of its losses since it hit record high marks earlier this month.
Apparently, that won’t be very long lasting, though, as the markets look like they were about to plunge before trading began Friday morning.
On Thursday, the Down Jones Industrial Average finished at 22,552.17 points, which marked a 6.4% increase. The S&P 500 increased 6.2%, finishing at 2,630.07, with the Nasdaq up 5.6% and finishing at 7,797.54.
Individual companies that have been particularly hard hit during the crisis have gotten a huge boost this week. Boeing increased 90%. American Airlines increased 50%. Carnival Corporation increased almost 50%.
All of that juice into the stock market and those companies was aided by an economic stimulus package that is projected to be roughly $2 trillion. The Senate has already passed the bill, and the House is set to vote on the measure on Friday. If it passes, President Donald Trump is expected to sign it into law quickly.
The bill includes huge sums of money to bail out hard-hit companies in struggling industries such as travel and tourism, while many Americans will get direct cash relief payments in the coming weeks, and unemployment insurance will get a significant boost.
All of this has occurred in the stock market the last few days even while unemployment claims reached a record-breaking number of 3.28 million last week.
Jerome Powell, the chairman of the Federal Reserve, said the U.S. seems to be in a recession for sure, but it’s not for any reasons related to the economy itself. He told NBC recently:
“We may well be in a recession. But I would point to the difference between this and a normal recession. There is nothing fundamentally wrong with our economy. Quite the contrary. We are starting from a very strong position.”
What he alludes to, then, is that once the coronavirus outbreak is under control and life can begin to return to normal, the economy should be in a solid position to rebound quickly, unlike in previous recessions where a monumental undertaking was necessary for a rebound.
The pandemic has led many state governments to effectively shut down operations for a period of time. This includes shuttering schools and government buildings, banning large gatherings, prohibiting the operation of non-essential businesses and forcing restaurants to offer take-out service only.
President Donald Trump has said he’d like to see some parts of the economy open up again by Easter on April 12, but it’s not clear yet if that’ll be enough time to contain the outbreak.
Stock futures didn’t look good pre-trading on Friday, with S&P 500 futures falling 2.4% and Nasdaq futures falling 2.3%. U.S. oil increased 0.2% to a little more than $22 a barrel, while gold fell 1.5% to just less than $1,630 per ounce.