WALL STREET ROARS BACK TO LIFE ON BIDED BOUNCE
Political stories and news have an impact on the stock market. The report can change the consumption behavior of a given market. The focus for today, Mar 4, 2020, is how the wall street roared back to life. It was after Joe Biden bounced back in the primaries and demonstrated a sigh of relief and confidence. He won 10 out of the 14 primaries held on Tuesday, sparking a jump in the health sector and also on the economic data on the worries brought by the spread of coronavirus. It has been long since S&P 500 stretched to an all-time high on Feb 19, and since then, the market has been deteriorating because of the coronavirus outbreak that has brought the thought of almost igniting a recession. S&P has recovered a 6% closing trough, but it falls short by 7.6 % of what the market hit on Feb 19.
Investors view Biden as a relief to the economy and market participants and are willing to invest upon his candidature. There was a more robust private hiring than expected, while the service sector has grown over time. The 11 significant areas in the S&P 500showed substantial advancements that were conveyed by utilities and healthcare. The U.S. exchanges rose from 10billion shares to over 11.04 billion shares on average in the last 20 days. The advancing issues in the NYSE surpassed the declining ones by a ratio of 5.34.1, which indicates that Biden’s choice in the primaries had a positive impact on the stock exchange.
Some of the questions that can get submitted on the app are the impact of the primaries’ news on abnormal stock returns. How is the health care affected by the coronavirus outbreak? The next question is whether the political temperature hurts economic activities or not. Do the candidates have economic policies that are relevant to the economy and can be adopted or not. The next question is whether the news agencies report accurate news on the candidates’ plans and economic forecast or not.