Coronavirus crisis starting to emerge?
Coronavirus infected 540832 individuals worldwide in 199 countries
Covid-19 Pandemic Unemployment Stimulus S&P 500Author: Admin
Published: March 29, 2020, 1:15 a.m. GMT+8
Last Updated: April 21, 2020, 12:47 a.m. GMT+8
Coronavirus infected 540832 individuals worldwide in 199 countries as of March 27, 2020, 09:46 GMT. The US became the epicenter of the viral outbreak with 85749 cases ahead of China and Italy. New York is the most affected state in the US.
The outbreak closes down large parts of America’s economy and the impact of the crisis starting to emerge. The financial condition is becoming increasingly difficult for Americans as weekly unemployment claims surged to nearly 3.3 million for the week ended March 21 compared to only 281 thousand in the week before. It is also a more than 10-fold increase in the claim.
The S&P 500 bounced back at the support level of 2344.14 since last Tuesday. S&P 500 rally because of the $2 trillion stimulus bill earlier this week, however, it slumped again on Friday as the US cases top the world. The volume surged in the last week, and A/D showed the stock-buying activity last week too. However, If the market cannot sustain the bullish trend, the next support level to watch would be at the 2023 index point of the S&P 500.
The US government passed a $2 trillion economic stimulus package to businesses, workers, healthcare systems and the economy to battle the coronavirus pandemic on 27th March 20. In the bill, the unemployment provisions provide eligible unemployed workers a weekly $600. It would incentivize Americans to stay home to prevent the outbreak.
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As the real economy started to feel the impact of COVID-19 lockdown. The stimulus aid would be providing general public an immediate relief to cope with the situation. The downside risk of stock market remains high as the infection rate is accelerating globally. If the outbreak is uncontrollable, large scale lockdown causing the global recession is inevitable too.