Skip to content
Subscriber Only

A $22 Trillion Stock Rally Now Hinges on Rapid Economic Recovery

  • Market rebounds sometimes stalled, pressuring policy makers
  • Onus seen on economic data to swing round in coming months
New York Reports First Decline In Daily Coronavirus Deaths
Photographer: Jeenah Moon/Bloomberg
Updated on

The rebound in global stocks back to December levels -- before the world had heard of Covid-19 -- has outstripped the monetary stimulus pumped into economies by global policy makers, raising the stakes for the V-shaped rebound that has been priced in.

The global stock market’s capitalization has climbed by roughly $22 trillion from the March low. Tallies of central bank stimulus are fraught with challenge, but Morgan Stanley last month predicted $13 trillion in cumulative balance-sheet expansion during the current easing cycle from the U.S., euro region, Japan and U.K. through the end of 2021.