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

What’s the latest on the extra COVID-19 unemployment benefits?

As of now, those $600-a-week payments will stop at the end of July. For many, unemployment payments have been a lifeline, but one that is about to end, if nothing changes. The debate over whether or not to extend these benefits continues among lawmakers.

With a spike in the number of COVID-19 cases, are restaurants and bars shutting back down?

The latest jobs report shows that 4.8 million Americans went back to work in June. More than 30% of those job gains were from bars and restaurants. But those industries are in trouble again. For example, because of the steep rise in COVID-19 cases in Texas, Gov. Greg Abbott, a Republican, increased restrictions on restaurant capacities and closed bars. It’s created a logistical nightmare.

Which businesses got Paycheck Protection Program loans?

The numbers are in — well, at least in part. The federal government has released the names of companies that received loans of $150,000 or more through the Paycheck Protection Program.

Some of the companies people are surprised got loans include Kanye West’s fashion line, Yeezy, TGI Fridays and P.F. Chang’s. The companies you might not recognize, particularly some smaller businesses, were able to hire back staff or partially reopen thanks to the loans.

You can find answers to more questions on unemployment benefits and COVID-19 here.

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