Stocks Rise on New Economic Hopes, Sanders Concession

Chris Gaetano
Published Date:
Apr 8, 2020

Major stock indices continue their climb on news that the economy might reopen sooner than expected, as well as the announcement that Senator Bernie Sanders (I -Vt.) is dropping out of the presidential race, leaving Former Vice President Joe Biden as the presumptive Democratic candidate, according to MarketWatch. As of the early afternoon, the Dow Jones had gained 560 points, the S&P 500 had gained 61, and the Nasdaq had gained 151. Yet, the day is young, and there have been other spectacular falls amid staggering gains over the course of a single trading session. Another MarketWatch article notes that the S&P 500's average absolute daily percentage change over the past five weeks has been plus or minus 4.8 percent, a level of volatility not seen since 1929.

The vast majority of financial advisers believe that, despite recent rallies, there is more pain to come, said CNBC. A 750-person poll of U.S. financial advisers found that 81 percent of them believe the market has yet to hit bottom, with most believing that will come by the end of May, and a quarter expecting it even later. Just 19 percent believe we have already touched the bottom.

A poll of institutional investors conducted by Goldman Sachs revealed similar thoughts: About 50 percent said the stock market has yet to reach bottom, and 75 percent  think that, despite recent gains, we're still in a bear market. Further, 45 percent don't view the market figures as particularly consequential because it appears they have yet to fully price in the major blow to the labor market that was recently announced. An analyst from Citibank said that the current market gains are more comparable to an aftershock, as there hasn't really been the volume to justify them.

Click here to see more of the latest news from the NYSSCPA.