In the history of the stock market since 1987, April 2020 appeared to be the best month. This month was a boon for good stocks’ future, but it was a bane for the economy. Everything else except the stock market is not going well as the deadly global pandemic has no end in sight. People are losing their jobs, the economy has fallen off a cliff, and the future of the stock market is baffled.
Outbreak of Coronavirus
After the massive outbreak of coronavirus across the world, investors didn’t know what to do with their money. The government is providing super low returns on their bonds. The stock market has created an optimistic feeling about the future of stocks over the science of this deadly virus. Investors aren’t sure if the market will last in the future or not. However, after the coronavirus crisis, the news and headlines are continually changing, and the stock market’s future has been pretty volatile in the past months. Lets now focus on the changes in the stock market.
Future of the Stock Market
Investors’ main focus now is how a company’s performance will be in the future, which is a month from now, six months from now, or even the end of this year. Moreover, the future of the stock market is one of the best real-time gauges, according to the investor’s knowledge. Also, the S&P 500 index has been an efficient tool to analyze the future performance of leading American companies. Investors are betting millions of dollars on the many bits of stock market information.
The giant technological companies, such as Apple, Google, Facebook, and Microsoft, are having a big chunk of the stock market. The figures of their stocks are increasing tremendously. These companies lifted the economy in this pandemic when the economy was shattering. These stocks enabled people to work from home and empower the economy.
US Emerging Stock Markets
The health front of the country is also raising hope. Despite this deadly virus, the global medical industry has reconciled its resources. Treatment and vaccines are the major issues that have been worked upon. The stock market for this industry is being characterized by rising share prices. People want to invest more to make the situation stable. This new virus has elevated gains in the US emerging markets.
Earlier, the oil markets were paying people to buy oil. But now the scenario is reversed. The oil prices in the US are back to almost $30. The prices are expected to increase more to $50 in recent times. The market for the oil industry is being stabilized in this economic darkness. The gap between demand and supply is also balanced. And this market is recovering.
Conclusion
The US economy was engulfed with trillions of cash and easy credit. Investors credited their federal reserves. It saved the market from a financial crisis. The Central Bank bought massive government, municipal and corporate bonds. As the interest rates for these bonds are low, the investors were out of bonds and equities. This helped to raise the stock prices in the future. As we have gone through different stock market sectors, we can see that this market appears to be rising in the future. This market is helping the country to balance the economic depression of COVID-19.
