Market Watch: Stocks close best month since 1987

Investor optimism carries Wall Street through April, but economists aren't convinced; Indicators from 1929 are becoming increasingly similar to those of 2020. The U.S. stocks had their best month of gains since 1987 as investors held together stock prices and had confidence in the small victories America made. In February and March, stocks crashed with the uncertainty of an end to the closure of the economy and restoration of health. 

April followed the downturn with shelter in place regulations seeming to flatten the coronavirus curve in the worst parts of the country, rallying markets back to a comfortable home. Wall Street is optimistic and confident in America's robust capabilities; however, a crisis economy is unpredictable and can have a lasting impact. 

"During the Great Recession...we lost 8.7 million jobs in the whole thing. Right now, we're losing that many jobs about every ten days," said Kevin Hassett, an economic adviser to President Trump, during a briefing last week.

The coronavirus piled up grim economic reports is far too familiar for America, blurring lines of whether an economic recovery is possible or timely. The International Monetary Fund predicted levels to surpass 2008 and approach those of the 1930s blatantly. At the worst of the great depression, the country had a -27% contraction in GDP and a 24% unemployment rate. Economists fear the U.S. is revisiting those levels as jobless claims jump to 30 million; economists expect a -20%-30% contraction in GDP over the next few months. 

However, unlike the great depression, there is a road to recovery surrounding the virus as policy and strategy closed the economy in the first place, the correct approach could open it back up.

Friday, closed sharply down after President Trump threatened tariffs on China due to their actions about the virus earlier on in the year. Tensions tanked the market and erased gains from the week; all averages sank 2-3% at market close on Friday. 

CNN business pointed out that Wall Street has underestimated the economic downturn that would occur from the virus; however, there have been extensive efforts to encourage investors who rallied the market to historic levels this past month. The Dow Jones gained 11% while the S&P 500 increased 12.7% in April, which is the most significant jump since 1981. NASDAQ grew 15.5%, and the Russel 2000 increased by 14%, which is the best monthly return since earlier in the decade. The government has played a significant role in maintaining the economy up until this point. The Federal Reserve and the Central Bank has pumped trillions into the economy, and forgivable loans have kept a portion of workers on the payroll. 

Hassett claimed that "If the virus does start to go away in a way that makes it so that almost every state feels comfortable that it's safe to open up, then we really could be looking at a rapid recovery because the incomes are still there." 

The next few weeks will presumably be a better indicator of how forcefully the virus will dent the economy in the long run and if it can be rebuilt in time to save their jobs.