US stocks go up against the gloomy news
The stock market in the United States has been rapidly rebounding in the last few days. The growth is happening amidst the controversial economic data.
The S&P 500 has ended up apt 2874 on April 17. The result falls approximately in the middle between the lowest and the highest performances this year - 28% higher than on the worst day of trading - March 23 - and 18% lower than the best day of trading - February 19. The rally has been launched primarily by the extraordinary actions of the central bank and the Federal Reserve, aimed at stabilizing the impacted economy. A stimulus from the federal government worth US$2.3 trillion also played its part.
Analysts and traders are cautiously turning to optimism. Representatives of Goldman Sachs believe, that the proactive relief policy has eliminated the worst possible developments and saved the economy from the complete collapse. Morgan Stanley’s strategist Andrew Sheets has stated that the overall decline will most likely be hard, yet will not last as long as a full-scale financial crisis. The markets will suffer the worst impacts during the second quarter.
At the same time, macroeconomic data in the United states continues to get worse. Over 22 million Americans filed jobless claims last month. Manufacturing in certain regions fell to the lowest level in four decades, as well as homebuilding across the country. The nation is also experiencing the sharpest decline in retail sector and general industrial output since 1946.