The strong measures undertaken by the government, the commitment of the general public to defeat the pandemic have produced great results. According to economic experts, all the major economies, including the US economy, is expected to register a roaring growth. In the USA, for the period of April-to-June, it has been expected that GDP accelerated at 9.2%. A major global problem always leaves behind signs of damage, but the situation is now slowly changing, and the economies are getting back to normal. Now, millions of sidelined workers have returned to their jobs, which means growth in productivity. Fiscal policies and support of governments is likely to shape the growth chart for all major economies.
The overall output is around 98.6% of its normal level before the outbreak of the pandemic in 2019. More and more employees are back to the workplace, the retail sector, and the aviation sectors are performing impressively. Of course, the household income dynamics indicates a healthy situation as per the senior financial economists. However, as every coin has two sides, this scenario also has a different picture. The net worth is being driven by enhancement in the financial assets. It is correct that personal income and stocks have swelled due to governmental support such as stimulus payments which is sooner or later going to stop.
As July 2021 is inching towards the end, a record surge was witnessed in all the three major US stock indexes. The investors were relaxed and in fact cheered at the surprising economic recovery. Simultaneously, growth was also seen in the US Treasury yields. The investors are eagerly waiting for the Federal Reserve meeting to get some hints about US economic recovery plans. A growth of 238.2 points or 0.68% was seen in the Dow Jones Industrial Average (.DJI). It was standing at 35,061.55. The Nasdaq Composite (.IXIC) managed to add 1.04% or 152.39 points. It was standing at 14,836.99. The S&P 500 (.SPX) also rose by about 1.01% or 44.31 points. It was standing at 4,411.79. The greenback also managed to register a second week of gain and the dollar index was slightly higher. All the investors are assuming that the situation will completely stabilize.
The stock market is benefitting from the positive corporate earnings. Social media firms have also made major gains. Oil market is also witnessing a surge as the demand has gone up exponentially. The Japanese currency, the Yen and the official currency of European Union, the Euro, were stable. Gold is up by 0.3%. It was standing at $1,806.66 an ounce.