Here’s your weekly update covering the biggest stories in the business world, all in a 5 minute read.
- The Dow ended the week down 5.55% while the S&P 500 dropped 4.78%. These losses marked Wall Street’s worst one-week performance since March 20, when they all plunged at least 12%. Friday’s trading saw a spike in volatility as the Dow swung from a jump of more than 800 points to a modest loss and then moved back into the green to post a decent gain for the day.
- As Covid-19 cases reach new highs, U.S. governors are facing difficult choices about how to balance economic recovery and the health of citizens.
- Coronavirus vaccine trials are moving ahead at a remarkable pace. Moderna’s final-stage clinical trial will begin in July and will include 30,000 people. A shot co-developed by the University of Oxford and AstraZeneca is starting final-stage clinical trials this month. Regeneron said it had begun human trials of a new antibody cocktail for Covid-19, part of an ambitious clinical-testing plan that could lead to a new treatment option by the end of summer if all goes well.
- The U.S. economy will shrink by 6.5% this year, the Federal Reserve has forecast, announcing it would keep interest rates close to zero into 2022.
- Weekly unemployment claims decreased to 1.5 million last week. Unemployment applications have tapered off from their peak at the start of the coronavirus pandemic, but remain at historically high rates even as states take steps to reopen and businesses start to bring workers back.
- U.S. consumer prices dropped in May for the third straight month as the coronavirus pandemic pushed the American economy into a recession. The Labor Department said Wednesday that its consumer price index fell 0.1% last month after tumbling 0.8% in April and 0.4% in March.
- When even shoeshine men are so confident in their bullishness they give stock tips to the pros, it’s time to run for the hills. Low-information ‘investors’ rule the stock market — at least until they lose every cent.
- A battle line is opening in the stock market. On one side are professional money managers focused on suddenly stodgy-seeming metrics like earnings growth. On the other, newbie day traders obsessed mainly with momentum.
- As the pandemic continues, we are all trying to figure out when it is our turn to use the resources and services we are so used to. Let Game Theory Tell You When It’s Time to Go Shopping.