That's why EVERYTHING WAS GOOD:
Second session of euphoria on Wall Street in 72 hours: after Tuesday's delay which followed a +3% rise on Monday, the indexes started to rise again, erasing the recent 'highs' of the '3 witches' session.
The Dow Jones gained +1.52% to 24,576, the S&P500 erased the resistance of the 2,940 by soaring 1.67% to 2,971 and the Nasdaq soared 2.08% to 9,376 points, returning to less than 4.8% of its absolute record.
But what to say about the Nasdaq-100, which is up by +2% (and up to around 9.498): it was around 4.00 pm at 2.5% of its absolute record of 19/02 (9.736Pts) and shows this evening +8.6% of annual gain: it has just gained +2.770Pts in less than 2 months (low at 6.773 on March 23rd).
This is the most spectacular increase (+40%) without the slightest consolidation in history, and the time frame is also the shortest in history.
The scenario is so astounding that no one dares to imagine the sociological impact of stock market records set - on credit and with 'magic money' - at the same time as the worst economic crash in history and its procession of human dramas... innumerable, not to mention deaths by the tens of thousands.
Wall Street's bullish obsession is such that information that belies the lightness with which the White House considers a 'return to normal activity' possible is ignored... such as the announcement of the 1,300 additional Covid-19 deaths (+24,000 new contaminations) in 24 hours in the United States, which marks a recovery in the death rate.
But all this does not carry much weight in the face of a FED that is wondering how to make sure it convinces Wall Street that rates will remain very low for a very long time.
While it would mainly be necessary to convince 'mainstreeet' that the tens of millions of unemployed Americans won't remain unemployed for very long... but if the FED can print money without limit (as Barron's reminded us on Tuesday evening), it cannot print job applications, orders for airliners, tanks to store oil, etc.
