As government officials express optimism regarding the economic recovery of the United States, the DOW and S&P 500 indexes inch ahead — demonstrating the strength of the New York Stock Exchange.
Comments from the government about the economic recovery of the United States come from Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell who believe that 2021 will be a strong year for the GDP and overall economic health and recovery of the United States.
Throughout the week, the DOW and S&P stock indexes have fluctuated significantly — falling bond yields caused a minor, temporary surge in declining technology stocks, while the energy sector and financial shares have dropped. The fluctuations amount to a total increase of .8 percent in underpriced value stocks and a .5 percent decrease in the value of growth stocks.
In addition to the improving stock prospects creating optimism about economic recovery, increased factory activity across the United States also indicates a rapidly recovering economy. Although factories are still dealing with supply chain disruptions in the wake of the Covid-19 Pandemic, the increasing demand for factory-made goods will help alleviate unemployment and speed recovery in other sectors.
One of the biggest losers in the stock rebound and economic recovery of the United States is big tech. Among some of the largest declines in today’s S&P 500 and NASDAQ indexes included Apple, Facebook, Tesla, and Intel, dropping anywhere from one percent all the way to 3.6 percent for Tesla. Despite the losses, investors still believe that big tech is a good long-term investment because of the increasing use of technology in our day-to-day lives.
While big tech may have seen significant declines today and over the past weeks, the price of oil and gas continues to rise, despite speculations that the price would plateau as OPEC nations decrease oil production. Oil prices themselves rose by six percent, spurring growth in the energy sector — EOG Resources and Marathon Oil both increased in value by more than five percent, while Diamondback Energy saw a six percent increase. Further, travel and airline companies also saw their stocks continue to increase in value as the rate of vaccinations increases around the United States and travel restrictions are relaxed.
In contrast to the optimism expressed by government officials, other countries and certain high-profile investors fear that rising Covid-19 cases abroad will slow down economic recovery and potentially even cause a greater decline. Optimism for the United States remains high as vaccination rollouts increase all across the country; however, European countries, in particular, may contribute to economic decline as they reject the AstraZeneca vaccine in favor of Pfizer and Moderna shots.
Overall, the American economy is set to make a strong recovery as stocks rebound, and vaccinations bring relief to a struggling workforce. Under President Joe Biden’s leadership, vaccination rollouts will increase dramatically in all 50 states and help restore the economy to pre-pandemic levels.
Although the stock market is not the most accurate measure of the average working American’s economic health, increases bode well for lessening unemployment and better work opportunities.