Wall Street experienced a sustained spike in the prices of stocks earlier in the week after US President Donald Trump claimed the infection rate of the coronavirus had stabilised. But despite the rally suggesting the “free fall” is over, financial strategist Jeffrey Kleintop insisted the full recovery of the market will depend on how businesses react to the aftermath of the pandemic. Speaking to CNBC International, Mr Kleintop said: “It’s certain that we don’t know what the recovery looks like, which is fairly obvious.
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“What the stock market has done here is it’s rallied on the idea that, maybe, the worst of the economic free fall is over and we’re now talking about reopening the economy.
“The rally that we’ve seen so far on that basis makes some sense but that’s the easy part.”
The financial strategist continued: “The hard part lies ahead. What kind of recovery are we going to have?
“Is this stimulus that’s been put in place enough to revive the economy?
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The stock market rallied on the hope the economy will re-open soon, Kleintop suggested (Image: CNBC)
Kleintop insisted the recovery will depend on how businesses adapt in the wake of the pandemic (Image: CNBC)
“Will people will safe leaving their homes again without nation-wide testing?
“And what this look like if we look at May, June, July – could we see a second wave of the infection as people interact a little more?
“That’s still unknown and we could have tougher times ahead.”
President Trump in March agreed to a $2 trillion stimulus to help diffuse the pressure the COVID-19 outbreak has already been having on the US, and global, economies.
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Donald Trump unveiled his plan to re-open the economy once the worst of the pandemic is over (Image: NBC NEWS)
The US stock market rallied twice this week (Image: GOOGLE)
The stock market rallied again ahead of the opening on Friday as a coronavirus treatment is due to enter later stages of testing.
Pharmaceutical company Gilead Sciences helped boost stock prices after their drug Remdesivir showed signs of being an effective treatment to help COVID-19 patients.
The antiviral drug is regularly used to treat Ebola but a trial on coronavirus sufferers recorded a rapid recovery from fever and respiratory symptoms.
The University of Chicago reported that nearly all patients who had received daily infusions of Remdesivir were then discharged in less than a week.
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Donald Trump outlines the three major steps for reopening US US stocks hopeful ahead of coronavirus treatment and economy reopening
Social distancing will continue to be a part of Present Trump’s policies for the time being (Image: EXPRESS.CO.UK)
The boost came after President Trump outlined the early stages of his ‘Opening Up America Again’ economic plan.
Under phase one of the plan, current lockdown measures such as avoiding non-essential travel would remain in place but large venues would be able to operate under strict physical distancing protocols”.
Phase two would allow non-essential travel to resume but only once no evidence of a resurgence of the outbreak is present.
Under phase three, states which are still seeing a downward trend of symptoms and cases can allow “public interactions” with physical distancing and the unrestricted staffing of worksites.