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US stocks surge, erasing 2020 losses

By Fabrice Pierre-Toussaint

Staff Writer for Telegraph Local | See my LinkedIn

Nasdaq and the S&P 500 fared well on Monday. There is positivity about the pace of recovery after Friday’s better-than-expected jobs report.

The US economy is officially in recession

The Dow finished up 461 points, or 1.7% higher. The S&P 500 ended up 1.2%, erasing its losses for the year. The Nasdaq Composite ended up 1.1%, its first record close since February.

The market rally came on the same day economists officially declared the United States is in a recession, ending the longest economic expansion in American history.

The broader stock market remains below the all-time high it reached on February 19. Wall Street has bet that huge, unprecedented sums of stimulus from the Federal Reserve and lawmakers will help to ease the economic pain caused by the stay-at-home orders.

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Stocks continued to rise further as drug makers announced promising test results for coronavirus treatments and vaccines.  As the US economy began to reopen, that gave investors even more hope that the company’s they placed their bets on will turn around in the near future.Still, the economy has a bumpy path to recovery ahead of it. The American unemployment rate is hovering above 13% and many businesses that rely on customers entering indoor spaces, such as restaurants, movie theaters, and sports arenas, will probably not recover for quite some time.

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