After a steady drop in Coronavirus cases in the United States, some states are considering reopening, some have reopened, rising the question: Is it too soon? In this article, we've broken down what's happening regarding the lockdown, updates on Coronavirus, and what all this can do for our economy.
Many states have been partially reopened- an interesting case is Florida. While the entirety of the state has begun opening- restaurants are now allowed to be filled at 25% capacity- The three most populous counties, Miami-Dade, Broward, and Palm Beach (all located on the southern tip of the peninsula) remain closed. New York City remains on lockdown- even after cases begin to die down. New York was hit the hardest in the United States, and the number of cases is still well over 300,000. The Trump Administration issued a statement that the Coronavirus Task Force was winding down, and could be disbanded in just as little as a month. People in the United States have grown restless- some defy the law, some protest it. Their concerns will hopefully soon come to an end.
Globally, lockdowns in International epicenters like Italy or China are slowly being lifted. Italy, which observed some of the strictest lockdown laws out of any other country, has cautiously lifted the lockdown, and millions return to normal lives.
It's easy to look at all the negatives- but things truly are beginning to look hopeful.
So what does this mean for our economy and the market?
At the end of the most previous stock tumble, the Dow Jones closed off at around 18,591 points. Since then, it has risen roughly 5,000 points. Statistically, 30 million Americans filed for unemployment, and the market crashed. Realistically, this was the first recession in almost 11 years, after 20,000 points in gains. Less worrisome when looking at the big picture. For two days in a row, stocks rallied, drawing the question: Could this be the end of the recession? It's hard to believe, after the Coronavirus screeched the booming U.S economy to a halt. After declining almost 5% in the first quarter, the United States GDP (gross domestic product) took a hit. So is the recession over? Well, technically no. The United States GDP says no. But for those concerned with the stock market, then yes- yes the recession is over. Stocks are rising over rumor of possible Coronavirus treatments or vaccines, news of the virus possibly dying down- after all, market rallies are fed on good news.
Summary: The United States is slowly lifting lockdown- many states remain on partial lockdown, while some states that were hit harder than others, like New York City, still remain closed. Is the recession over? Technically no, but stocks are expected to rise after good news relating to the coronavirus.
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