A worse-than-expected hit to U.S. GDP announced Wednesday couldn’t stop North American stock markets from continuing their powerful rebound from the coronavirus crash, with all major indices surging more than two per cent for the day.
April is now on course to become only the third month since 1991 to see the S&P 500 return more than 10 per cent. But rather than rejoice at a surge that has seen the S&P 500 jump more than 31 per cent since the bottom in March, many market analysts and money managers are instead wary — and preaching caution to investors.
“The idea that the stock market can run and have nothing to do with income streams is a head scratcher,” said Sam Labell, Veritas Investment Research’s head of research. “A 10 per cent correction is not out of the question.”
Wednesday’s gains appeared to be driven by a positive update from