Despite Being in a Recession, U.S. Stock Market Surges

The U.S. has officially been in a recession since February, this according to the National Bureau of Economic Research. It’s no surprise the U.S. went into a recession as a result of the pandemic. The virus, as well as fear of spread, interrupted the longest economic expansion seen in American history and resulted in the worst unemployment numbers since the Great Depression. However, it may come as a shock to many that the World Bank expects the global economy to contract 5.2%. That would mark this as this worst global recession in 80 years. Despite all this, the same day the recession was declared official, U.S. stocks surged and 2020 losses were essentially erased. On the heels of the better than expected job report which was released last week, Nasdaq reported an all-time high and the S&P 500 was in the positives. The Dow was also up 461 points. Still, the path ahead to full recovery is expected to be long and difficult.