How Will the COVID Vaccine Affect the Market When It’s Available?
The world is waiting anxiously for a COVID vaccine to be available. Read on to learn how it will affect the market once it’s finally available.
Without a COVID vaccine, the stock market and the entire economy is suffering during the coronavirus pandemic. People have lost their jobs and less money is circulating in the economy, causing businesses to shutter if they overextended themselves before the pandemic. Simply put—people are afraid, and so they aren’t participating in the economy.
It’s intensified some longstanding economic issues that were presented before the pandemic, and it’s spilling into politics and even family life. However, a COVID vaccine could help alleviate these issues, as well as the coronavirus itself.
Keep reading below to learn more about the effects a COVID vaccine may have on markets in the U.S.
A COVID Vaccine Will Rejuvenate the Stock Market
On October 28, the stock market plummeted in one of the sharpest drops through the COVID-19 pandemic. It erased a lot of the gains the market made, as investors worked to reignite hopes and companies tried to attract consumers back to retailers. A lot of the reason for the fall was the absence of a stimulus package.
A lot of the gains were made on promises from federal officials that a stimulus package was on the way. After talks fell through between President Trump and Congress, people pulled out of the market. Without a package, consumers would not return to the market and without them, companies would not make money.
A COVID-19 vaccine will assuage consumers’ fears over traditional shopping, and boost hiring across the United States. People will be able to return to work and will have more money to spend. They’re bound to recirculate it into the economy—all that needs to happen first is for them to get the money they need.
Falling Stocks Are a Result of Falling Hopes in Recovery
When stocks first dropped, the cause was mostly due to a sense of the unknown. No investor or doctor knew what to expect from COVID-19, they just expected it to wreak havoc on the economy. The investors who pulled out early were right, the virus annihilated business.
Now, communities and doctors have learned more about the coronavirus and are working to slow its spread. However, the economy remains in a slump because there hasn’t been a significant federal intervention. Without something to boost business, it may never get back to the same levels.
Abandoned Industries Will See More Business
With a COVID-19 vaccine, people will be more comfortable taking vacations and returning to malls. Retailers may see more foot traffic, cruise lines may sell more tickets, and most of all airlines will see stocks soar again. A COVID-19 vaccine will make people more comfortable returning to life as normal.
And returning to life as normal means a boost in business for some industries that people currently aren’t interested in.
The COVID Vaccine Will Do More Than Make Money
When a COVID vaccine is finally released, the effects it will have on the economy will be significant. It will practically save the economy from near-complete destruction, swooping in to save some major businesses. With a vaccine, people will be more comfortable hiring people, putting money in more people’s pockets, and encouraging them to spend it.
And businesses should be ready for when that happens. They will need staff to manage the crowds of customers that are bound to be banging at business’s doors. And for help when things get back to normal, just contact us!