Most economic charts we look at in the LPL Research Department look alike. Many segments of the US economy came to an abrupt halt in March when the lockdowns and business closures began, making most economic charts covering March and April look like a steep drop on a roller coaster.

Two months later, the economy is starting to pick up as states reopen. All 50 states have now reopened to some extent, but traditional economic data is too slow to pick up the change.

We can see the impact of the reopenings in real-time data such as map routing requests by the Apple maps app, shown in the LPL Chart of the Day. More map se

The incredible rally off the March 23 lows continues for equities, with the S&P 500 Index now up more than 32% in 40 trading days. As impressive as the rally has been, we do have some near-term concerns, as we discussed in Downside Risk Remains. Higher valuations, US-/China relations, weakening technicals, and the historically troublesome summer months all could play a part in potential weakness after the record run.

“In 40 trading days, the S&P 500 gained 32%, which is second only to the 40 days off the March 2009 lows,” explained LPL Financial Senior Market Strategist Ryan Detrick. “Looking back at hist

There’re plenty of people who think negative interest rates are a good policy. But we don’t really think so at the Federal Reserve. And I think it’s an area of real uncertainty in the central banking world.

-Fed Chair Jerome Powell, 60 Minutes interview, 5/13/20

The Federal Reserve (Fed) has unleashed a wide range of policy moves to support the economy and keep financial markets running smoothly in the face of COVID-19 related economic weakness. In a series of speeches last week, culminating in Fed Chair Jerome Powell’s appearance on 60 Minutes on Sunday evening, May 19 (recorded on May 13), Fed

Stocks fell last week, and many blamed the drop on high stock valuations, Federal Reserve Chairman Jerome Powell’s gloomy outlook, and rising US-China tensions. Perhaps investors also are increasingly skeptical about prospects for a smooth V-shaped recovery. Regardless, stocks may have been due for a pullback after gains in late March through April and could potentially have further to fall.

Three Big Stories

We think the three biggest stories for investors in the last week were: 1) elevated stock market valuations, 2) Federal Reserve (Fed) Chair Jerome Powell’s gloomy outlook, and 3) rising US-China tensions.&nb