It’s tough to remember a time when the disconnect between Wall Street and Main Street was so apparent. Quarantine orders are still in place in much of the U.S. Layoffs are continuing by the thousands—including 1,000 today at Lyft. People are still dying from the virus. And yet many stocks have recovered much of the ground lost over the past two months. What gives?
Investors appear to be grasping at any sign that the pandemic is on the wane, or that drug treatments are near. That’s understandable, but it feels artificial. Most companies reporting their first-quarter results are cautioning that the rest of the year is too uncertain to warrant any kind of forecast.