Coronavirus Treatment Progress Pushes Stocks Higher

August 24, 2020

Coronavirus Treatment Progress Pushes Stocks Higher Photo

With the Democratic National Convention last week and the Republican National Convention this week, the presidential election is shifting into full gear. The coronavirus will play a pivotal role in this year’s election, with both parties focused on navigating to a post-virus world. Stock markets continue to move higher and make new highs on better-than-expected economic activity and optimism about a vaccine or therapeutic treatment to manage the virus. Given the amount of monetary and fiscal stimulus that has been deployed globally, valuations continue to move higher as well. This comes at a time when interest rates are near or below zero, which makes the value of future growth increase significantly.

I will also be watching the Federal Reserve’s (Fed) virtual event Aug. 27-28. Normally staged in Jackson Hole, Wyoming, the annual economic policy gathering has traditionally drawn central bankers from around the world but is being held virtually this year due to the pandemic. Fed Chair Powell’s speech on Thursday will be the highlight.

Tags: election | Federal Reserve | Stimulus | Jackson Hole

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