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Why is the stock market doing well right now?

Andie Corban and Kai Ryssdal Apr 27, 2020
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Traders at the New York Stock Exchange in 2014. Investors are focusing on government support for big companies, professor says. Andrew Burton/Getty Images
COVID-19

Why is the stock market doing well right now?

Andie Corban and Kai Ryssdal Apr 27, 2020
Traders at the New York Stock Exchange in 2014. Investors are focusing on government support for big companies, professor says. Andrew Burton/Getty Images
HTML EMBED:
COPY

In the past few weeks, more than 26 million Americans have filed unemployment claims, retail sales plummeted and small businesses have struggled to acquire loans. Despite this, the stock market has looked mostly positive after sharp declines in March.

Marketplace host Kai Ryssdal spoke with Anat Admati, professor of finance at Stanford University Graduate School of Business, about the disconnect between the markets and the real economy.

“The stock market is high because it doesn’t really represent the entire economy,” Admati said. “Small businesses have to survive somehow, and it’s becoming incredibly difficult for them.”

She said investors are likely focusing more on bailouts for big corporations than struggling small businesses and workers.

Click the audio player above to hear the interview.

COVID-19 Economy FAQs

What are the details of President Joe Biden’s coronavirus relief plan?

The $1.9 trillion plan would aim to speed up the vaccine rollout and provide financial help to individuals, states and local governments and businesses. Called the “American Rescue Plan,” the legislative proposal would meet Biden’s goal of administering 100 million vaccines by the 100th day of his administration, while advancing his objective of reopening most schools by the spring. It would also include $1,400 checks for most Americans. Get the rest of the specifics here.

What kind of help can small businesses get right now?

A new round of Paycheck Protection Program loans recently became available for pandemic-ravaged businesses. These loans don’t have to be paid back if rules are met. Right now, loans are open for first-time applicants. And the application has to go through community banking organizations — no big banks, for now, at least. This rollout is designed to help business owners who couldn’t get a PPP loan before.

What does the hiring situation in the U.S. look like as we enter the new year?

New data on job openings and postings provide a glimpse of what to expect in the job market in the coming weeks and months. This time of year typically sees a spike in hiring and job-search activity, says Jill Chapman with Insperity, a recruiting services firm. But that kind of optimistic planning for the future isn’t really the vibe these days. Job postings have been lagging on the job search site Indeed. Listings were down about 11% in December compared to a year earlier.

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