The markets are getting a boost today as some COVID-19 restrictions are lifted.
Although the coronavirus pandemic isn’t over and we still don’t know when normal life will resume, some states are ending complete quarantine conditions and reopening non-essential businesses.
Reopening Decisions Left to Governors
President Trump has largely left it up to state governments to decide when it’s safe to resume business. He has released guidelines for states to reopen in slow steps after seeing a downward trajectory of COVID-19 for 14 days.
Southern States Take the Lead
In Georgia, hair salons, bowling alleys, tattoo parlors, and gyms have reopened and boat ramps and retail stores are now open in South Carolina.
Texas could announce some reopenings today, Mississippi is considering loosening up the shelter in place order that expires today. In Florida, the governor is open to suggestions from the public on how reopening the state should be structured.
In New Jersey, plans for reopening the state are expected today and even Governor Andrew Cuomo is planning a “limited reopening” of New York on May 15th.
There Is Optimism and Less Optimism
“As we begin to reopen the economy in May and June, you’re going to see the economy really bounce back in July, August and September” Treasury Secretary Steven Mnuchin
Treasury Secretary Steven Mnuchin is optimistic that the economy will recover over the summer as businesses reopen and Americans who have been in seclusion during quarantine venture back out into public. However, Barry Diller, chairman of Expedia Group is not as optimistic and says he believes recovery could begin around September.
Markets Perk Up As States Reopen
The markets seem to be responding in a positive way to the limited reopenings with Dow, Nasdaq, and the S&P 500 on the rise. While the gains are not tremendous, they are a welcome change from the drops of last week. The Dow lost 1.9%, the S&P lost 1.3% and Nasdaq lost .2 for the week.
At the time of this writing, Apple, Google, and Verizon are a slight loss today, trading in the red.