If you don’t get more stimulus checks this summer from Uncle Sam, here’s how the stock market may react
With cities across major states such as California, Florida and Texas returning to some form of lockdown due to spiking COVID-19 cases after brief full re-openings, it’s becoming clear the U.S. economy will likely need a fresh jolt of stimulus from lawmakers.
If that stimulus isn’t received this summer the stock market — which has been blindly rallying despite growing risks of a renewed dive in economic activity because of COVID-19 —could easily fall off a cliff.
“It will be a hit, no question,” warned Belpointe Asset Management chief strategist David Nelson on Yahoo Finance’s The First Trade of the risk to stocks if more stimulus isn’t enacted. Other pros Yahoo Finance has chatted up estimate the stock market could plunge nearly 20% if lawmakers don’t enact additional stimulus.
Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, individuals were eligible for up to $1,200 (depending on income level)