Why is Wall Street soaring while Main Street is burning?

Business 2020/6/4

Why is Wall Street soaring while Main Street is burning?

The divide between Wall Street and Main Street has grown sharply in recent weeks, amid the coronavirus pandemic and widespread civil unrest. To many, the market’s rise appeared as both cause and symptom of the widening gap between the country´s haves and have-nots.

The Dow Jones Industrial Average rose by more than 400 points on Wednesday, with the S&P 500 now recovering a full 40 percent from its March lows. Yet millions of workers and small business owners are struggling to cope with the one-two punch of an economically devastating pandemic and unrest following the death of George Floyd at the hands of Minneapolis police that have filled America’s TV screens and news feeds with images of burned police cars, smashed store windows and looting in cities across the country.

“The stock market represents the fortunes of the fortunate… consolidating their power over the economy,” said Mark Zandi, chief economist at Moody’s Analytics. “As long as they feel like the economy isn´t going to be disrupted significantly by the riots, they’re not going to price that in the stock market,” he said.

Full coverage of George Floyd’s death and protests around the country

“I think it’s just an assumption at this point that it will be isolated to a few cities or won´t last long enough to have an impact, or it’s a function of some of the other things the markets already discounted in terms of econ

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