The intervention of the State and Central Bank as measures to support economic growth as ignited some hopes in the stock market. According to 10CFDs, some beautiful moments have been recorded this May in the global stock markets, and this can be attributed to the further bailout funds and stimulus offered by central banks.
Many of the world’s biggest economies have been laying a strong demand for sovereign debt, which has heightened the optimism for a rise in stock—and also arming governments the ability to fund the record spending commitments of these large systems across the globe. One of such instances recorded was when the US Federal Reserve stated that further support would be provided if new coronavirus outbreaks emerge.
As documented by 10CFDs experts minutes after the US Federal Reserve released its statement about new provisions for more economic stimulus, several stocks rose significantly. For instance, the S&P 500 increased by 1.7 percent to a level that was last seen in March, and Nasdaq moved up by 2.1 percent to a level point that was last recorded in mid-February.
The reaction of Stocks to Vaccine Development
News about the development of vaccines for COVID-19 also has impacted the stock market movement. However, there is no news about the speed of development, stocks market experience a rally after a discussion on the early-stage trial of a vaccine.
For example, according to 10CFDs experts, European equities reversed early losses giving rise to substantial gains. The FTSE 100 in London ended the last hour of trade with 1.1 percent while the regional benchmark Stoxx 600 closed up with almost a 1 percent raise.
As the hope for the development of a vaccine increases, and the enhanced support of the government on the economies, the expectations of investors are higher—a great hope for better days in the stock markets in no distant time.