4 Reasons The Market’s In For A Crazy Week
Hold on tight.
The markets gone nuts since mid-March when the coronavirus first hit our shores… And the coming week is likely to bring even more craziness.
Here’s a quick roundup of the 4 things to watch out for this week that could rile the markets even more.
1. Rapidly Increasing Coronavirus Cases in The US and Worldwide
We’ve highlighted this a bunch in the last few week as new coronavirus cases began spiking… But now levels are accelerating even faster at levels we haven’t seen before.
It took from Mid-March to June 11th to go from almost zero cases of the coronavirus outside of China to 7.4 million coronavirus cases worldwide.
And its only taken 4 days to jump by another 900,000 new cases from 9.4 million on June 24th to just under 10.3 million as of this writing on June 28th.
From Mid-March to about early June we consistently saw new daily cases in the range of 40,000 to 90,000.
The US and world achieved this by flattening the curve through lockdowns and quarantines.
But then we started reopening again as Summer approached… Now we’re seeing daily new cases worldwide of between 150,000 and 195,000 worldwide every day.
As more people leave their houses again new cases are exploding US and worldwide.
Texas is now stopping its reopening plans and reinstituting some lockdown and quarantine measures.
Florida barred the sale of alcohol in restaurants and bars.
Miami closed all its beaches ahead of the July 4th holiday weekend.
Arizona is back on quarantine restrictions.
And other states are considering rolling back the reopening of their economies as hospital intensive units (ICU) beds fill nationwide.
We flattened the curve when this crisis began in March with lockdowns and quarantines… We’re about to find out if we did enough… Or if we reopened too soon.
Especially with the approaching July 4th Independence Day holiday now fast approaching in the US.
Which gets us to #2
2. Upcoming July 4th Weekend
Americans love a lot of stuff… But celebrating freedom is at the top of that list for many.
With that comes the enormous July 4th celebrations nationwide.
My neighborhood turns into a war zone of fireworks. And many neighborhoods do nationwide.
With these celebrations come barbecues and people getting together and spending time near each other.
Well until this year… Maybe.
And that’s a big maybe.
We’ve been locked down for more than 4 months now and told to stay away from large gatherings.
For the most part we did that… For 3.5 months .
As Summer approached, restrictions lifted nationwide and people began leaving their houses more around Memorial Day holiday.
This combined with the still ongoing protests and riots over racial injustices and people being sick of sitting in the house all the time and more people are gathering again.
We’re now seeing the effects of the first weeks of summer get togethers, barbecues, travel, protests, etc. in the huge increases in new daily coronavirus cases as illustrated before.
As one example, President Trump still plans to attend the July 4 th firework show at Mount Rushmore in Western South Dakota.
The event will be attended by up to 7,500 people.
And countless people will go to barbecues, picnics, fireworks shows, and other events nationwide celebrating our independence and freedom.
With the 4th of July holiday approaching it will be interesting to see how this affects new coronavirus cases nationwide in the coming weeks.
Now onto #3
3. US Labor Departments Updated Unemployment and Job Numbers
Every Thursday the US Labor Department releases updated job loss and unemployment numbers.
As of last week, we’re now at 30.5 million remaining unemployed. And more than 50 million job losses total.
Staggering numbers that looked to be getting better in June.
Its estimated that we saw 3 million jobs added back in June according to reports… But will this continue with the huge increases in daily coronavirus cases?
And will this last with more cities and states nationwide locking things down again?
Can businesses survive another round of lockdowns?
Will this lead to more business closures?
Will this lead to more unemployment?
We’ll find out more when the US Labor Department releases its updated numbers on Thursday.
4. Congress fighting over the next stimulus
On March 27th President Trump signed the CARES Act into law that gave people stimulus payments due to the coronavirus.
Since then, economic issues have gotten far worse.
And on May 16th the US House of Representatives passed the next stimulus bill – the HEROES Act.
S0 far this hasn’t gone anywhere in the senate.
But again, things are now far worse than they were in March. And new coronavirus cases are exploding.
Will this bill move forward as is?
Will the bill get changed and passed at some point to help Americans that are suffering?
Will congress keep fighting and doing nothing even as new coronavirus cases skyrocket and businesses close again?
Will congress continue to do nothing while millions of Americans are unemployed and their savings are dwindling?
I predict we’ll see another stimulus plan signed into law sooner rather than later. What I don’t know is if it will be this week before congress recesses for the holiday weekend or not.
But what I do know is they’ll do something soon if coronavirus continue exploding and businesses begin closing again.
Watch for news on this front in the next few weeks.
All four of these things will be major news issues affecting the market this week and in the coming weeks. And maybe even for the rest of the Summer and year depending on what coronavirus cases do in the coming weeks.
Depending on new coronavirus cases affecting business closures and unemployment this looks to be a large week in figuring out what our next few months will look like.
Whether we’re back on lock down again and businesses close and more unemployment happens.
Or whether we can continue opening things up again or not and rehiring people to get the economy back on track.
We’ll keep you updated on all of them as news comes out as it affects you.