I need examples on how the corona virus is affecting the stock market, but I don't understand anything about the stock market myself. I am thinking that, if we use the product of masks for example, it means that people buy masks and just sets a high price for them?
How is the corona virus affecting the stock market?
- Posted:
- 3+ months ago by Popper8975
- Topics:
- market, corona, stock, virus, example, stock market
Details:
Answers (2)
Whilst a specific traded commodity (which masks aren't) may inflate, the market as a whole has been seeing steep drops on a daily basis - see nasdaq, s&p; those are indexes, or basically weighted averages of the top companies in a certain category.
I'm no economist, but since more and more people are unable to work, their income is nullified (leading to poverty eventually), their less mundane purchases are nullified, and as such the companies they work for and buy from are decreasing in revenue, which amounts to haemorrhaging money for such entities, which is reflected in their market value (how much people are willing to pay for a share). A manufacturing company which adapts itself to mask production might see increased revenue, but these are likely the minority.
To put things in perspective, last month's declines resulted in these indices almost going below their 2017 value, give or take.
In covid 1t wave people getting Bored at home, many people are turning to the stock market and dabbling in day trading for entertainment and profits. Day trading has become very popular worldwide since the onset of the coronavirus pandemic. Activity has “increased dramatically” in the first quarter of 2020 compared with 2019.