As COVID-19 has affected the health and wellbeing of billions around the world, it has also deeply affected the markets. While at first it was easy to view the virus as something that is far away, intangible, and non-threatening to Americans, new statistics on infection rates and death toll both abroad and at home have created a sense of unease. This lack of safety and security have deeply affected the economy and the markets. The effects were so large that the Dow Jones dropped from above 29,000 in February to a three and a half year low of 18,591 on March 23. As always, the mindset of not knowing what is to come, and feelings of instability, has led to drops in the markets. 

But more devastatingly, most Americans are no longer working. As the government requests that employees of non-essential firms either work remotely or do not work at all, productivity is rapidly decreasing and goods are not being purchased. As this is necessary for the success of capitalism, the economy is currently suffering. To incentivize Americans to begin spending again and re-stimulate the economy, the government passed a stimulus bill, providing money to individuals and businesses. This has provided hope for Americans and for the markets, as it has allowed for the Dow to rise back into the range of 22,000 as March concludes. Whether this stimulus will provide the long term benefits the country so desperately needs is up for debate, but the view tends to be pessimistic as the perception is that this is a bandaid, not a fix. Most believe the economy will only become healthy again once the virus passes and society returns to normality. 

But even once this does occur, even once the economy does return to its healthy state, will it be the same? It is likely that many industries and the economy will have to adjust. Will the demand for cruises or travel restaurants or sporting events remain the same, or will people no longer feel safe in these settings? While no one has the answers to these questions, it will be interesting to observe the human response once the virus begins to ease away, and it will be just as fascinating to see how this influences individual businesses and the markets as a whole.