Stocks rebound from Tuesday’s sell-off. Global markets are bouncing, as crude oil has somewhat stabilized after the historic sell-off. Caution over restarting the country continues to dominate conversation, with several southern states set to reopen businesses. Senate passage of the coronavirus relief package may be helping investor sentiment this morning.
The latest on oil. West Texas Intermediate (WTI) crude oil (June futures contract) is rebounding sharply today, well off overnight lows, after suffering historic losses over the past few days. WTI was down more than 50% in three days. OPEC ministers held informal conversations via videoconference Tuesday, and the Trump administration is considering aid for oil and gas producers in exchange for equity stakes in the companies or their crude reserves.
When will the recession begin officially? LPL Research is on record that the recession started in March. The majority of the economic data we are seeing is some of the worst ever, which only makes us wonder when it officially will be deemed a recession. It turns out, the official call of when a recession started actually can take years to be official. That implies this recession could be long over by the time it is recognized “officially.” We will take a closer look at this later today on the LPL Research blog.
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