Recent economic data confirms that the US economy has entered a recession, led by the consumer, which accounts for more than two-thirds of the economy based on gross domestic product (GDP).  The consumer spending collapse was evident from March’s personal consumption expenditures data released last Wednesday, which showed a record 7.5% month-over-month drop in consumer outlays.

The service sector has also contracted sharply, not surprisingly given the widespread stay-at-home orders and business shutdowns that began in March. Yesterday’s Institute for Supply Management (ISM) Purchasing Manager’s Index (PMI)

Stocks have staged one of the strongest rallies ever since the S&P 500 Index’s bear market low on March 23. Some, including LPL Research, are worried that the rally may have come too far too fast given the economic realities facing us right now. This disconnect has many investors scratching their heads.

Heightened uncertainty related to the pandemic makes it nearly impossible to predict where the markets may go from here. But one thing we do know, as we have pointed out in our Road to Recovery Playbook, is that the massive policy response has helped boost confidence for consumers, businesses, and investors, and is one k

One of the most historic market crashes ever took place 10 years ago today, with the Dow Jones Industrial Average Index plunging more than 1,000 points, or 9%, within minutes, only to regain most of the losses by the end of the day. And thus, the flash crash was born.

Originally, a fat finger trade for a large order to sell Proctor & Gamble stock was blamed as the first domino to set off a terrible chain reaction, but the CME Group quickly determined no evidence of this. They even went as far to say that high-frequency traders actually contributed to market stability, as stock prices quickly rebounded.

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Like other areas of the economy, the finances of states, counties, cities, and towns have been heavily impacted by efforts to contain the COVID-19 pandemic. The disruption has raised concerns for municipal bond (“muni”) investors. As shown in the LPL Chart of the Day, municipal bond yields, a measure of risk, have started to rise again compared with similarly dated Treasuries after looking like they were trending downward.

“Municipal bond investors are concerned and rightfully so,” said LPL Financial Chief Investment Officer Burt White. “And state and local governments are facing nearly