Markets rebound, economy to “fully recover”

Markets rose on Tuesday.

The S&P 500 jumped 1.5 percent and the STOXX Europe 600 rose 0.5 percent.

“We remain constructive on equities and see the latest round of growth and slowdown fears premature and overblown,” wrote Dubravko Lakos-Bujas, head of US equity strategy at JPMorgan.

While COVID-19 infections continue to rise in much of the world, with the US for example averaging about 26,000 daily cases in the last seven days, more than double the average from a month ago, many analysts do not see much impact on the economic recovery.

Chris Zaccarelli, CIO at Independent Advisor Alliance, said that it is “willing to let the sell-off run its course and buy the dip on the belief that the economy will fully recover and return to its prior growth trajectory, bringing most of the cyclical companies in the airline, travel and leisure industries along with it”.