Economics
A Bull’s Conundrum: Rally In Stocks Is Built on Staying Inside
- Stocks surged as death tolls dipped in New York and Europe
- Decline shows that social distancing needs to continue: Cantor
A person crosses Times Square in New York on April 6.
Photographer: Kena Betancur/Getty ImagesThis article is for subscribers only.
The S&P 500 surged Monday after New York coronavirus fatalities declined for the first time, while Italy and Spain reported the fewest deaths in more than two weeks. To Peter Cecchini, investors aren’t thinking clearly enough about what it all means.
As the Cantor Fitzgerald strategist sees it, a lower death rate suggests self-isolation and staying indoors are working. While obviously the best possible news for society, its meaning for markets comes with important caveats, among them the economic cost of prolonging the lockdown.