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Market Watch Weekly | May 22nd, 2020 | Phase 2 Going to Feel Like Line-ups At Disneyland.

Erik Dekker - May 22, 2020
Our Market Watch Weekly sheds light on current events affecting the capital markets and steps we're taking to ensure the success of our clients.

It was a big week for North American benchmarks all trading up roughly 3% amid optimism around the global economy reopening as well as rising hopes for a coronavirus vaccine. Leading the market higher this week were sectors that had been lagging: Retailers, Industrials, Financials and Energy. Prior to this week, a majority of the markets 34% gain since the March 23 bottom had been focused to the ultra-cap tech names in Amazon, Apple, Microsoft, Netflix, Facebook, Google (FAANG). Seeing the laggards play catch-up to their tech counterparts goes a long to strengthening the market’s footing and providing for a more sustained recovery.

Meanwhile, the largest U.S. federal budget deficit since World War II might get a little bit larger. On Friday, Twitter & Chief Donald Trump showed more support for a new round of coronavirus relief saying that the U.S. could take “One more nice shot at stimulus. It’s coming sooner rather than later.” Support has mounted in the White House as Democrats have pushed for an immediate, sweeping plan to push more spending money to individuals and expand the social safety net during the crisis.

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