September 2, 2020
September began right where August left off, with the U.S. equity markets in full rally mode. For the first day of September, the Dow and S&P 500 surged 215.61 and 26.34 points, or +0.76% and +0.75%, respectively. The NASDAQ continued on it tear, gaining 164.21 points, or +1.39%.
In early trading this morning, the Dow and S&P 500 are extending their rally in the face of receiving disappointing economic data. While analysts polled by Dow Jones expected 1.17 million new jobs, the report reflected only 428,000 were actually created. Slow employment growth would seem to be expected as many states continue at least some form of coronavirus lockdown – a direct correlation between employment and workers ability to work.
“I remain constructive over the next 12 months,” said Mike Wilson, Chief U.S. Equity Strategist for Morgan Stanley. “I think we’re a little bit overcooked… It’s impossible to try to time these types of corrections,” Wilson continued. “It would not surprise me if we got a 10% correction, but it wouldn’t be surprising if we didn’t, either. We’re in a bull market.”