S&P bounces faster after each drop – .

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S&P bounces faster after each drop – .


Time for the S&P 500 to return to peak levels

after the declines linked to the pandemic

Percentage changes in the

S&P 500 during each period

NOV.-DEC. ’21

2 WEEKS, 4 DAYS,

UNTIL THERE

(CALENDAR DAYS)

Delta spreads

as worries grow

on inflation

SEPT.-OCT. ’21

7 WEEKS

TO RECOVER

Death and

restrictions

increase in the middle

electoral cycle

SEPT.-NOV. ’20

10 WEEKS, 2 DAYS

Covid-19

throw it

world in

chaos

FÉV.-AOT. ’20

25 WEEKS, 6 DAYS

Length of time for S&P 500 to regain peak levels after pandemic declines

Covid-19

throws

the world

in chaos

Delta spreads

as worries grow

on inflation

Deaths and restrictions

increase in the middle of the electoral cycle

2 WEEKS, 4 DAYS,

UNTIL THERE

(CALENDAR DAYS)

Percentage changes of the S&P 500 during each period

Length of time for S&P 500 to regain peak levels after pandemic declines

The delta spreads like marigolds

grow above inflation

Deaths and restrictions

increase in the middle of the electoral cycle

Covid-19 jets

the world in chaos

NOV.-DEC. ’21

2 WEEKS, 4 DAYS, NEVER

(CALENDAR DAYS)

SEPT.-OCT. ’21

7 WEEKS TO RECOVER

SEPT.-NOV. ’20

10 WEEKS, 2 DAYS

FÉV.-AOT. ’20

25 WEEKS, 6 DAYS

Percentage change of the S&P 500 during each period

Inventories have fluctuated sharply since the emergence of the Omicron variant of the coronavirus, once again raising concerns about the potential of the pandemic to harm the global economy.

This is the latest market turmoil since the Covid-19 outbreak about two years ago, with the virus repeatedly rocking Wall Street’s assumptions about whether people would shop, travel, or even hang out. would show up at work. Each new phase of the pandemic has brought new requirements for testing, border closures or warnings against public gatherings.

Much is still unknown about the Omicron variant, including the protection offered by vaccines. But financial markets have taken the news on the heels of previous epidemics.

It follows a pattern. Every episode of volatility caused by a pandemic in the stock market since February 2020 has been shorter than the previous one and followed by a rally to a new high. The S&P 500 through Monday had recouped almost all of its losses from its previous peak after officials announced Omicron’s existence on November 26.

The stock market has often been a barometer of the course of the pandemic, tumbling past worrying milestones and rising as vaccinations and new treatments progress. But the two haven’t always moved at the same pace, and Wall Street’s performance has at times ignored the human toll of the pandemic, as it has instead focused on other factors that could boost corporate profits, such as low interest rates and government spending.

Newly reported

Covid-19 case

worldwide

Newly reported Covid-19

daily cases around the world

New daily cases of Covid-19 reported around the world

FEB-MARCH 2020 When the epidemic reached a global scale and millions of people began to lose their jobs during the recession, the S&P lost more than a third of its value from its peak.

SEPT.-OCT. 2020 The number of cases has exploded and the death toll has continued to rise, fueling concerns that further restrictions could again squeeze the global economy. Coupled with the uncertainty surrounding the US presidential election, the S&P came close to correction, a symbolic but worrying milestone on Wall Street.

MARCH-APRIL 2021 Even though the number of cases hit an all-time high, the stock market continued to climb steadily, supported by optimism behind the vaccine rollout.

SEPT.-OCT. 2021 The persistence of the Delta variant threatened the recovery as high inflation raised questions as to whether Federal Reserve officials would begin to scale back stimulus efforts.

NOV.-DEC. 2021 The emergence of the Omicron variant has rocked markets again, just as colder weather in many parts of the world has helped to spike cases.

FEB-MARCH 2020 When the epidemic reached a global scale and millions of people began to lose their jobs during the recession, the S&P lost more than a third of its value from its peak.

SEPT.-OCT. 2020 The number of cases has exploded and the death toll has continued to rise, fueling concerns that further restrictions could again squeeze the global economy. Coupled with the uncertainty surrounding the US presidential election, the S&P came close to correction, a symbolic but worrying milestone on Wall Street.

MARCH-APRIL 2021 Even though the number of cases hit an all-time high, the stock market continued to climb steadily, supported by optimism behind the vaccine rollout.

SEPT.-OCT. 2021 The persistence of the Delta variant threatened the recovery as high inflation raised questions as to whether Federal Reserve officials would begin to scale back stimulus efforts.

NOV.-DEC. 2021 The emergence of the Omicron variant has rocked markets again, just as colder weather in many parts of the world has helped to spike cases.

FEB-MARCH 2020 When the epidemic reached a global scale and millions of people began to lose their jobs during the recession, the S&P lost more than a third of its value from its peak.

SEPT.-OCT. 2020 The number of cases has exploded and the death toll has continued to rise, fueling concerns that further restrictions could again squeeze the global economy. Coupled with the uncertainty surrounding the US presidential election, the S&P came close to correction, a symbolic but worrying milestone on Wall Street.

MARCH-APRIL 2021 Even though the number of cases hit an all-time high, the stock market continued to climb steadily, supported by optimism behind the vaccine rollout.

SEPT.-OCT. 2021 The persistence of the Delta variant threatened the recovery as high inflation raised questions as to whether Federal Reserve officials would begin to scale back stimulus efforts.

NOV.-DEC. 2021 The emergence of the Omicron variant has rocked markets again, just as colder weather in many parts of the world has helped to spike cases.

Market recoveries from the pandemic-induced declines have been underpinned by the Federal Reserve’s actions to reduce borrowing costs and maintain capital capture in the financial system. Advances in vaccines and other treatments have helped soften market declines.

They also helped refocus attention on the prospects for economic recovery and growth, even as the number of cases continued to rise – at least until a new development, like the Omicron discovery, recalls. the uncertainty the world still faces. In recent weeks, Wall Street economists have started to downgrade their forecasts for economic growth, with some citing the impact the variant could have on the pace of the reopening. Many believe the main risk is that the new variant will exacerbate the lingering disarray in global supply chains.

If this results in tighter closures, it could force factories to close, exacerbating shortages of everything from cars to building materials. Already, these types of disruptions have been one of the main reasons why prices have risen much faster than economists expected, and the potential for the Federal Reserve to have to act to curb price gains. added to the recent market turmoil.

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