merica is attempting to reopen economies that have been shuttered across the country and Wall Street investors don’t seem to be particularly concerned about how that all shakes out in the weeks, months and years to come.
Although stocks were facing a bumpy ride on Tuesday, equity gauges have been mostly on the uptrend since putting in lows on March 23.
The Dow Jones Industrial Average DJIA, 2.22% is up by about 30% since its late-March closing low at 18,591.93, when fears of the economic damage the coronavirus epidemic could do gripped the market, leaving the blue-chip index 18.3% down from its Feb. 12 record closing peak 29,551.42.
The S&P 500 SPX, 2.65% and the Nasdaq Composite COMP, 3.31% indexes are up 28% and 26%, respectively from their late-March nadir and down 15.2% and 12% from their respective record highs.
Looked at it another way, the Dow is headed for its best monthly gain, up 10%, since October of 2002; the S&P 500 is on pace for its sharpest monthly rally, up 11.2%, since December of 1991; the Nasdaq is on track for its best monthly return, a gain of 12.4%, since April 2009; and the small-capitalization Russell 2000 index RUT, 4.73% is headed for its best monthly advance since October 2011, with a rise of 15%, according to Dow Jones Market Data.
Are investors being too dismissive of the challenges of restarting economies that have been rocked by the pandemic that has infected more than 3 million people world-wide and killed 212,000, according to data compiled by Johns Hopkins University?
Is it a case of fear of missing out, or FOMO, taking shape?
The Wall Street-appointed Bond King, Jeff Gundlach, on Monday said that he thinks that a retest of the recent lows is plausible.
Originally Published on MarketWatch
