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The Market Wrap for May 1: Reopened Economies & a Potential COVID-19 Cure

Another week, another COVID-19 news cycle. This week, however, the news seemed to be beneficial for investors. As the world’s economies continue to grapple with the coronavirus pandemic, a few glimmers of hope hit the press wires. News broke that many nations hit early on by the pandemic have begun reopening their economies, lifting stay-at-home orders, and ending travel bans. This includes several states in the U.S. In addition to this positive news, traders also received encouraging data on several possible treatments / vaccines for the virus, which helped to lift the week’s overall spirits.

As did a bullish FOMC meeting from the Federal Reserve: Powell & Co. continued to pledge more liquidity and stimulus measures to keep the economy going. Congress also did its part with additional funding for small business lending.

However, data and earnings kept gains in check throughout much of the trading sessions. Measures in industrial activity, employment and consumer health showed a souring picture for much of the world and the U.S. economy. Earnings also painted a bleak picture with guidance figures across the board coming in low. Meanwhile, a few bellwethers managed to miss estimates by a wide margin.

Ultimately, the combination of both good and bad news throughout the week managed to place stocks on a seesaw once again. Volatility and daily swings continued to be the norm.

Be sure to check out our previous Wrap here, when oil plunged to historic lows.

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