(May 15): US stocks led global markets to a strong rebound in April and early May. The Dow Jones Industrial Average and Standard & Poor’s 500 index were up by 11.1% and 12.7% respectively last month, the best monthly gains in more than three decades.

Stock price movements for the past few months have been largely driven by news related to the Covid-19, from initial full-blown fears of a global pandemic to relief that the world is not facing imminent apocalypse.

But what of the inexplicable stock market resilience even as the stream of recent data showed severe damage to economies? The world is in the deepest recession since the Great Depression. Yet the S&P 500 is trading at only 16.9% below its all-time high — and the Dow is about 21.4% off its peak while the Nasdaq is just 9.9% lower.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook