April 6, 2020
Good Monday morning,
Although the newest economic stimulus package was implemented last week, the daily news of the spread and death toll from the coronavirus overshadowed any potential good news, driving the S&P 500 index down 2.1%. This was the sixth out of the last seven weeks the U.S. equity markets have produced negative results.
But what a difference a weekend makes! On reports that although the number of coronavirus cases increased, they did so at a slower pace than in recent weeks. At 6:20am PDT today, the Dow futures were up more than 800 points indicating a solid rally at market’s open. Within one hour of trading, the Dow had gained more than 1,000 points.
According to the Trump administration and the CDC, this and next week may be the most critical and potentially lethal in the battle against the coronavirus. SIP (shelter in place) orders and hygiene protocol seem to have helped flatten the curve of virus infections, but we are warned we may be facing the peak. In reality, we need to peak before we can recover and get the coronavirus behind us.
As always, please do not hesitate to contact is at (831) 422-4910 or HFG@hastiefg.com should you have any questions.
Please be safe and stay healthy.