WHAT MOVED THE MARKET
Stocks Up, Economy Down
The coronavirus is still torturing the global economy with bleak data keeps coming. China on Thursday announced its GDP shrank 6.8% in the first quarter of 2020, the lowest in its recorded history, which foreshadows the pain expected in the U.S. and around the world. US retail sales, a measure of purchases, fell by 8.7% in March from a month earlier, also the most severe decline on record. Though investors are constantly exposed to bad news in recent weeks, stocks still go up. In the past two weeks, the Dow Jones index rose 15%—its best performance since 1938. S&P 500 and Nasdaq Composite also surge. The Federal Reserve’s massive stimulus plan and the government’s effort are the main reasons for the rebound, which give investors confidence in a so-called V-shaped recovery, a sharp slowdown followed by a quick recovery. Besides, surgent in technological stocks also helps strengthen the indexes. Concerns still exist among investors, but many of them still “hold their noses and buy”, said an analyst.