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Market Update: Mon, Mar 30, 2020

Market Update: Mon, Mar 30, 2020

| March 30, 2020
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Market Update: Mon, Mar 30, 2020 | LPL Financial Research

DAILY INSIGHTS

Another big week. Stocks opened higher on the heels of huge gains last week. President Trump extended the CDC’s social distancing guidelines through April, as there has been success with containment strategies in Seattle, and China saw no new cases in Wuhan for a sixth straight day. Last, there is already discussion about Congress working on a fourth stimulus package, and Japan is pushing for a $500 billion plus stimulus package.

Big bounce last week. Stocks finally bounced last week, as the Dow had its best week since the Great Depression, and the S&P 500 Index had its best week since March 2009. The bounce was sparked by a combination of historically oversold conditions, a potential peak in new cases in Italy, and Congress passing a nearly $2 trillion fiscal stimulus plan to immediately help those impacted most by the COVID-19 pandemic.

Upgrading equities. In this week’s Weekly Market Commentary, we discuss why we have upgraded our view on equities to overweight from market weight, where it has been since March 2019. As we’ve discussed in our Road to Recovery Playbook, we now have visibility into how bad this recession will be, and the policy response has been sufficient to restore confidence. Although we still haven’t seen a peak in the number of new COVID-19 cases in the United States, we expect that to come within the next two weeks.

 

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This Research material was prepared by LPL Financial, LLC.

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