The S&P 500 posted yet another gain Thursday, even after new data showed the economy shrank for a second straight quarter.
Of course, stocks rallying on the arrival of vaccines seems to make intuitive sense. Is it logical, then, for stocks to rally on the prospect of recession?It's our shorthand to remind you that despite decades of press coverage that conflates economic conditions and stock market performance, the market actually has done quite well during downturns. This is especially true when the Federal Reserve cuts interest rates.of 2020 and 2021. Hundreds of thousands of dead. Millions of jobs lost.
Starting in mid-June, the yield on the 10-year Treasury note — the most widely followed bond gauge, has plunged from about 3.50% to about 2.70%. Rates go down when expectations about growth and inflation fall. So, in a way, it's actually the fears of the slowdown that are helping to drive share prices up.
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