But what of the inexplicable stock market resilience even as the stream of recent data showed severe damage to economies? The world is in the deepest recession since the Great Depression. Yet the S&P 500 is trading at only 16.9% below its all-time high — and the Dow is about 21.4% off its peak while the Nasdaq is just 9.9% lower.
(May 15): US stocks led global markets to a strong rebound in April and early May. The Dow Jones Industrial Average and Standard & Poor’s 500 index were up by 11.1% and 12.7% respectively last month, the best monthly gains in more than three decades.
Stock price movements for the past few months have been largely driven by news related to the Covid-19, from initial full-blown fears of a global pandemic to relief that the world is not facing imminent apocalypse.
