Does Mastercard's Positive Data Mean the Economy Has Recovered?
As the COVID-19 pandemic swept across the world this winter and spring, economic activity has plunged. Though U.S. gross domestic product (GDP) only fell 4.8% in the first quarter, remember that government-imposed quarantines happened in the second half of March, just two weeks before quarter-end. For the second quarter ending this month, the Atlanta Federal Reserve Bank's GDPNow model projects U.S. GDP could decline a shocking 52.8%!
And yet, the stock market has rallied, even as unemployment has skyrocketed and GDP has fallen. Why? Because the market is forward-looking, and the most recent data shows things have been steadily improving over the past couple of months.
In fact, one of the biggest financial data providers out there is Mastercard (NYSE: MA), which has been releasing weekly operating data throughout the crisis. Despite the Fed's dour outlook, Mastercard's most recent data drop shows things may be improving more than expected.
Source Fool.com
