Also Read | Dark underbelly of India Inc’s shop floorsBut the downbeat mood was already lifting by the afternoon with the S&P 500 making up much of its lost ground.
Short-term disruptions and often dreadful public-health outcomes in parts of the world have been largely overlooked by financial markets on the core understanding that extraordinary government and central-bank support would be available to prevent mass unemployment and loss of income, and to ward off huge waves of default.With that in place, investors have been content to look ahead to earnings at least a year out.
The U.S. Treasury yield curve in particular has steepened, indicating that the miserable economic conditions of 2020 are considered less and less likely to drag.