Rally may see healthy consolidation. The S&P 500 Index is lower at open as market participants take a breath to reevaluate the powerful rally off March 23 lows. Major Asian indexes were mostly higher overnight, while Europe is also seeing losses at midday. While the rally has reasonable support in better-than-expected (although still weak) economic data, a period of consolidation, which can last days, weeks, or even develop into a legitimate pullback, can be healthy for long-run gains.
We’re in a recession. It’s official: According to the National Bureau of Economic Research, the US economy peaked in February and entered a recession in March, ending the longest economic expansion in history at 128 months. We will take a closer look at this development later today on the LPL Research blog.
COVID-19 news. In the United States, positive trends in hospitalizations and deaths have continued, though new cases continue to rise steadily in several US states, including Arizona and North Carolina. The World Health Organization (WHO) said asymptomatic spread is very rare, contradicting some prior reports. A Harvard study suggested COVID-19 may have circulated in China in summer 2019.
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