Question

Why Did Stock Markets Rebound From Covid in Record Time?

Answer 1

Stock markets rebound from the covid shock in real time as we can see a V-shaped recovery which is generally not possible in case of a market crash so we have seen a market crash of almost 40% from the peak of almost all the indices in February-March,whereas we have also seen the recovery which has been very sharp on all the market indices and we have reclaimed new high and the market has almost provided with the rate of return of 90% on the Nasdaq so it can be said that it has been a wild recovery because people have been expecting recovery on the economic front sooner

Stock markets are always very futuristic in nature and due to the the liquidity inclusions of the Federal Reserve and support from markets the market has reclaimed new highs and it can be reflected through the multi-year highs of various shares which are reflecting that market a highly optimistic of a recovery and it is also discounting that covid is not going to hurt the economic prospect on a larger basis so stock market has provided with a very high rate of return in a very short period of time and it has rebounded from the covid in a record time.