Key Points
- Optimism about a quick economic comeback has been tempered by more global cases of the coronavirus 3
The U.S. economy is beginning to recover from the worst of the coronavirus crisis, but with some 25 million Americans displaced from work and the pandemic ongoing, it will need more help, Federal Reserve Chair Jerome Powell told lawmakers on Wednesday. 1
“We believe the market is pricing in quite a bit of good news and the rally is likely to take a breather in coming months as the recovery evolves,” Scott Wren, Wells Fargo’s senior global market strategist, said in a note. “We expect volatility in the coming months as we gauge how the reopenings are going and how consumer spending is progressing.” 2
“Don’t confuse lack of volatility with stability. The market is very unstable with news of the virus outbreak worsening, which could lead to less global trade. But news of no second coronavirus wave in the U.S. could lead to a smoother recovery.” 3