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Ilya St
in
Stocks
August 2 09:50

Bloomberg: good news for the stock market is over

Robust quarterly reports from technology giants mark the end of good news period. The next few weeks will bring much more disturbing news for the stock market, Bloomberg predicts.
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The Fed has already done everything it could: The stakes are almost zero and will remain there for a long time. The regulator is buying corporate bonds and has dispelled any concerns about liquidity shortages. All this is very good for the stock market, but what will the Fed do during the next exchange crisis?
We know that the US economy is in serious trouble. Its recovery is sluggish due to the deteriorating epidemiological situation, which makes political disagreements in the US even more dangerous.
A new massive package of financial assistance is unlikely to be agreed soon, and this at least means that those most in need will not get support early.
At the same time, Amazon reported quarterly revenue, which corresponds to almost US$600 for each registered voter in the US. The company expects similar revenues this quarter as well. And it's only one company in the big four.
So people who own shares and other financial assets will feel great, but everyone else will not be doing so well.
In the US, the gap between rich and poor continues to grow, and it could have a substantial negative impact on the stock market, given the context of the upcoming US presidential elections. Political conflict over the event and riots against the backdrop of the coronavirus pandemic are unlikely to contribute to a rapid economic recovery. Prospects for an overbought US stock market look quite unenviable.
Robust quarterly reports from technology giants mark the end of a period of good news. The next few weeks will bring much more negative news for stock market.