2020 has been far from a perfect year, and the new decade didn’t get off to a very good start. Coronavirus had everyone go back into their shells, and the world closed down for a while. As the COVID cases spiked and had the US markets stall their reopening plans, the stock market thrived as it closed down the best quarter in two decades.
The success has been labelled as a disconnect between financial markets and the economic reality. Hopes for vaccines, a decrease in the confirmed case rate and sheer optimism in terms of recovery kept the stocks going. Dow Jones, S&P 500 and NASDAQ made a brilliant increase in their quarterly closure by ending the quarter at 17.77, 19.95, and 30.63 percent, respectively.
With the beginning of a new quarter, expert analyst, Tom Essaye, pointed out the weak foundation of the rally and that if the stocks aren’t supported properly, next quarter won't be as promising as this one because it will only take one stimulus disappointment from an “ugly day.”
Infographic by: Statista.com