As the novel coronavirus (COVID-19) proceeds to travel through America’s biggest cities once more due to a second wave of infections forming, its effect is not only being felt by the 1.6 Million Americans that are currently confirmed infected, but also by the market itself. The lockdowns, quarantines, and restrictions that have come and gone and once again coming back as they are being reinstated by certain states are in turn freezing the economy.
Just a few months ago, near the end of March, we saw how the U.S. stock market had crashed with many stocks plummeting by over 35% of their original value compared to the end of February. While the stock market has seen slow recovery over the past 3 months, it has not reached pre-coronavirus levels yet and will not for quite some time.
Many sectors have been hit hard and are still continuing to suffer as coronavirus is still a major and growing threat in the U.S., such as the major sectors of travel and shopping. However, one major sector that has seen a continuous uptrend is the pharmaceutical industry as the U.S. and many other countries pour their finances into finding a vaccine as soon as possible.
SMEs are also expected to take a major hit as they expect a larger decrease in profits and are considering more and more job cuts compared to larger firms. This problem is only worsened as larger manufacturing firms seem to be the primary beneficiaries of government support due to the “Too Big to Fail” fail theory which says that if these large firms were to fail then it would be even more disastrous to the greater economic system.
This brief information about how coronavirus is affecting the U.S. is rapidly evolving as the circumstance and impacts of the COVID-19 pandemic are continuously changing. PMO Partners is the place to stay up to date on how coronavirus is affecting the world’s economy.