Jobs report shocker supports run to all-time highs, market bull Ed Yardeni predicts (via TradingNation)
Yardeni, who spent decades on the street running investment strategy for firms including Prudential and Deutsche Bank, credits the government's unprecedented steps to soften the virus' economic blow as the main catalyst for the surprise jump.that was basically implemented in April, encouraging small businesses to keep people on their payrolls," he said.
Yardeni speculates that's exactly what happened: Main Street started bringing back laid off workers once they got the funds. Barring a second wave of virus cases, he believes the jobs boost helps set the stage for a sharp economic rebound this year before leveling off by winter. "It is going to be a V-[shape] initially," said Yardeni. "Real GDP could be down 40% to 50% in the second quarter. But the worse it is in the second quarter, the greater the likelihood we'll see something like a 20% increase in the third quarter."to record highs over the next couple months — even exceeding his 2021 year-end target of 3,500. On Friday, the index closed at 3,193, 3% below the all-time high hit on Feb.19.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wall Street rallies to end higher on surprise U.S. jobs reportWall Street surged on Friday after a strikingly upbeat May jobs report unexpectedly provided the clearest evidence yet that the U.S. economy is headed for a quicker-than-anticipated recovery.
Read more »
Wall Street doubts Fed's $600-billion lending plan can succeedThe Main Street Lending Program's slow rollout, combined with its complexity, has the financial industry questioning whether it will work.
Read more »
Wall Street Week Ahead: Bond investors look for Fed to justify steepening yield curveExpectations that the global economy has dodged the worst-case coronavirus pandemic scenarios have led to a dramatic sell-off in U.S. government bonds from their record highs, pushing the yield curve to its steepest level since March.
Read more »
Trump Is Literally Building A Wall Around the White HouseDonald Trump is finally, kinda-sorta getting his “big, beautiful wall”—not along the southern border, but around the White House
Read more »
Wall Street's latest surge isn't benefiting many AmericansWhile the U.S. economy is showing signs of life as businesses reopen and job growth rebounds, the gap between the real economy and the stock market remains unusually wide.
Read more »