Stock Market Evaluation

When looking at the stock market this year, the main thing you will notice is a sharp decline beginning in late February. However, the first major drop was on March 9, with the largest point plunge for the Dow to that date. It was then followed by two more record setting drops on the 12th and the 16th as well. These were apparently the three worst point drops in U.S. history as well. The primary driving force of this crash has been over fears of a recession due to the Coronavirus and oil price drops. Because of the lockdown, millions of people are unemployed now and don't have any stable income source. After the drops in March, the stock price started to recover, but I think that another problem might cause it to go down again. Yesterday the price of crude oil dropped to negative for the first time in decades. This means that companies will pay for their oil to get taken away from them. This is because a large contract fell through partially over Coronavirus concerns. If the price of oil doesn't back up soon I do feel like there's a chance we could have another recession. However, I also do think that many stocks will recover once the pandemic starts to die down and quarantine ends. People getting their jobs back will allow the economy to recover somewhat, and that might also bring stock prices back up. However, if the oil price continues to be in the negative, then there might be some consequences for the local economy because of the energy sector. 

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