5 Reasons The Market Is Rising While Unemployment Is Skyrocketing
Last Friday, May 8, was an odd day in the markets. That morning, the Bureau of Labor Statistics revealed the April damage from the COVID-19-related lockdowns, and the numbers weren't pretty. The unemployment rate skyrocketed by 10.3 percentage points to 14.7%, as non-farm payrolls fell by a stunning 20.5 million during the month.
Yet the market rallied, with the S&P 500 rising 1.69%, the Nasdaq climbing 1.58%, and the Russell 2000 surging 3.64%. As of now, the S&P has already risen a shocking 33.7% off its March lows, though it still remains 13.7% below its February highs.
Given the staggering job losses, what's going on here? Well, there are a few reasons stocks have acted so well over the past six weeks. While these gains are by no means assured, it's important to note the reasons that the scary headlines and violent price movements of the past two months shouldn't deter you from your long-term investing plan.
Source Fool.com
