One of Wall Street’s biggest fears seems to be abating quicker than initially imagined. Back in December, the outbreak of coronavirus hit the street hard and picked up speed as the number of deaths/infected patients grew exponentially. With cases spreading to other countries, investors worried that the outbreak would not only take down China’s economy but hit total global growth.
Last week, those fears seemed to slow, and this week, the coronavirus and its containment seemed within reach. The news provided an upbeat tone to the overall market and drove gains on the week. However, stocks continued to ebb and flow based on conflicting reports from China and various health organizations.
Adding to those gains was the fact that overall economic news continues to be great. It turns out that neither the coronavirus nor the trade war has damaged global growth. Great economic data released on Friday, as well as throughout the week, painted a robust picture of the U.S. economy. From manufacturing to consumer health, things are bullish, and there was also a slight uptick in the data.
Earnings this week also provided a decent bump to stocks. As did several corporate actions. With strong reported guidance estimates and M&A activity continuing to grow, the outlook for a bullish economic environment was retained.
All in all, with the coronavirus causing uncertainty, traders focused on the data and pushed the broader markets higher.
Be sure to check out our previous Wrap here, when the coronavirus fears began to wane.
