COVID-19

NYSE president: The stock market is “not necessarily reflective” of the economy

Andie Corban and Kai Ryssdal May 22, 2020
Heard on: Marketplace
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New York Stock Exchange President Stacey Cunningham speaking in 2018. Jewel Samad/Getty Images
COVID-19

NYSE president: The stock market is “not necessarily reflective” of the economy

Andie Corban and Kai Ryssdal May 22, 2020
New York Stock Exchange President Stacey Cunningham speaking in 2018. Jewel Samad/Getty Images
HTML EMBED:
COPY

The trading floor at the New York Stock Exchange is reopening on Tuesday after being closed for two months. Marketplace host Kai Ryssdal spoke with Stacey Cunningham, president of the New York Stock Exchange, about what’s been going on with the stock market.

“The stock market is not necessarily reflective of all elements of the economy,” Cunningham said. Indexes like the S&P 500 and Dow Jones Industrial Average only represent investor sentiment for a subset of companies. “That’s not capturing what some of the small and midsize businesses who aren’t part of those indexes are going through right now.”

Though Cunningham said all-electronic trading at the NYSE has worked for the past 2 months, she said getting traders back on the floor will mean less volatility.

“What we’re missing when we move to this model when we’ve shut the floor is the value of human judgment,” Cunningham said.

Most employees at the NYSE will continue to work remotely, while 25% of floor brokers will return with new social-distancing measures.

Click the audio player above to hear the interview.

COVID-19 Economy FAQs

How many people are flying? Has traveled picked up?

Flying is starting to recover to levels the airline industry hasn’t seen in months. The Transportation Security Administration announced on Oct. 19 that it’s screened more than 1 million passengers on a single day — its highest number since March 17. The TSA also screened more than 6 million passengers last week, its highest weekly volume since the start of the COVID-19 pandemic. While travel is improving, the TSA announcement comes amid warnings that the U.S. is in the third wave of the coronavirus. There are now more than 8 million cases in the country, with more than 219,000 deaths.

How are Americans feeling about their finances?

Nearly half of all Americans would have trouble paying for an unexpected $250 bill and a third of Americans have less income than before the pandemic, according to the latest results of our Marketplace-Edison Poll. Also, 6 in 10 Americans think that race has at least some impact on an individual’s long-term financial situation, but Black respondents are much more likely to think that race has a big impact on a person’s long-term financial situation than white or Hispanic/Latinx respondents.

Find the rest of the poll results here, which cover how Americans have been faring financially about six months into the pandemic, race and equity within the workplace and some of the key issues Trump and Biden supporters are concerned about.

What’s going to happen to retailers, especially with the holiday shopping season approaching?

A report out recently from the accounting consultancy BDO USA said 29 big retailers filed for bankruptcy protection through August. And if bankruptcies continue at that pace, the number could rival the bankruptcies of 2010, after the Great Recession. For retailers, the last three months of this year will be even more critical than usual for their survival as they look for some hope around the holidays.

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