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One of the driving forces for the market’s recent upswing has been the reopening of the U.S. economy. Traders had been hopeful that the coronavirus pandemic would have been a short blip in terms of the economy, and that the reopening of states would bring a sharp recovery, and as such, traders bid up stocks in accordance to that theory. While it’s been mostly true, this week proved that the coronavirus may still be a major threat.
Due to rising case numbers and increased hospitalizations, many traders began to worry that the economy may have to shut down again or that the bounce-back won’t be as swift as anticipated. This created a choppy trading environment throughout the week and sent stocks to lows on several days.
Buoying that scenario was continued powerful earnings from the tech sector. Investors have once again been drawn toward tech for its cash flows and earnings prowess. And, with that, tech managed to save the market during the week’s sessions.
Traders also fretted as an old enemy – the U.S./China Trade war – reared its ugly head again, as the White House continues to blame Beijing for its handling of the coronavirus.
All in all, the week was another volatile one for traders.
Be sure to check out our previous Wrap here, when civil rights struggles continued.