In: Finance
U.S. stocks have been steady for recovery since the pandemic hit in the 1st quarter as investors shrugged off the dim jobs report, again highlighting the growing rift between a rallying stock market and stumbling economy.
The broad gains were the latest head-scratching development for many market observers, who have been parsing a stream of abysmal economic data while watching the U.S. stock market stage a recovery.
That disconnect grew more stark in the 2nd and 3rd quarter. What is driving this gap? One common wager: Current data on the economy are terrible but are bound to improve. What else is possibly driving the gap? Provide at least two possible explanations in a paragraph of no more than three sentences.