Any crisis is like a vaccine for the US economy. Once people have a jab, they feel rough for a while, but soon they get immune to some dreadful disease. The same is true about the top global economy. Throughout its history, the US economy has proven the viability of fair market principles. Amazingly, it rises like a phoenix from the ashes of any grave challenge.
The US stock market took the brunt of the pandemic-induced crisis. US stocks were brutally bruised by the nationwide lockdown in 2020. Nevertheless, licking the wounds after the crash in March 2020, the stock market showed strength and resilience and clicked into gear. Remarkably, whenever a new COVID wave resurfaces, the stock market remains unaffected by new economic shocks.
Nowadays, all key stock indices on Wall Street have been printing new record highs. Interestingly, all companies and sectors are involved in the nonstop rally, even those ones that have been hurt by the recent crisis. The Dow Jones Industrial Average has surged above 36,000 for the first time ever. The Standard & Poor's 500 has been trading firmly higher. The Nasdaq has been also extending its steady rise.
The US government and monetary authorities responded to the first pandemic wave with timely and efficient measures. Unprecedented relief packages and the massive bond-buying program revitalized the economy and revived optimism in financial markets. American businesses and households certainly benefited from the federal generous financial aid. Fortunately, the domestic economy gained momentum rapidly following the recession of 2020. As a result, US companies again have been reporting upbeat corporate earnings throughout the whole 2021. Ex-Treasury Secretary Steven Mnuchin who steered the US economy through the financial and economic havoc called on investors not to exaggerate the importance of statistics released during the recession in 2020 and at the turbulent time of 2021. Indeed, these dismal metrics should not overshadow the optimistic outlook for the next year.
