Date : April 8, 2020
Category : In the News
It is a new month, a new quarter and a new chapter for the markets, the global economy, governments and policy makers worldwide. Below is an update summarizing important happenings from the week.
After two weeks of significant downside in stocks, the S&P 500 surged 10.3% for the week ended March 27, its best week since March 2009. As this week began, investors hoped the positive momentum would continue to build.
Instead, the week ending today, April 3rd, generated another bumpy ride with a loss of 2.1% over the five day period. This leaves the index up 11.2% from its March 23rd low.
As the coronavirus spreads and ultimately peaks in communities in the U.S. and around the world, additional volatility in stock prices should be expected. During the Financial Crisis, the S&P 500 notched six different rallies of 9% or more between September 2008 and December 2008, before the index bottomed out in March 2009. Stocks prices will likely continue to see-saw in the weeks and months ahead as the world continues to grapple with COVID-19.
The pandemic has triggered financial hardship for many Americans across the country, as initial jobless claims spiked to $10 million recently. Though the government has taken a major step in mitigating the impact with the Coronavirus Aid, Relief, and Economic Security (CARES) Act, we will likely see more uncertainty until the virus is under control, and Americans are back to work and participating fully in the economy.
Last Friday, President Donald Trump officially signed into law the bipartisan CARES Act. This $2.2 trillion stimulus package — the largest in US history — is intended to provide economic relief to individuals and businesses affected by the COVID-19 pandemic.
Per last week’s commentary, you are probably aware of the $1,200 direct payments to individuals, and federal loan programs available to small and large businesses — so below, is a breakdown of some lesser-known provisions:
While the CARES Act is good news for businesses and individuals across the country, additional legislative measures may be needed in the future. We will continue to keep you updated. In the meantime, please contact us at (310) 791-3226 or email your personal wealth advisor directly if you would like to continue the conversation.
Wishing you and your family safety and good health now, and in the weeks and months ahead.
HARRIS FINANCIAL ADVISORS
The S&P 500 is a market capitalization-weighted index that tracks the 500 largest companies listed on the New York Stock Exchange or NASDAQ Composite. It is used as a benchmark of the overall stock market’s performance.
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