NASDAQ Up 75% Since March 23; 30 Million Unemployed; 2Q GDP Down 31.7%

Stocks had another nice day on Wednesday. For the NASDAQ a nearly two percent gain on virtually no news, so it's become rather obvious that the tech space has become quite the crowded trade.

The rise of the NASDAQ has been impressive to say the least. Since bottoming out at 6,631.42 on March 23, Wednesday's close at 11,665.06 is a 75.9% gain in just five months' time, so, if there's a better way to make money, Wall Street investors aren't interested. They have found the pot of gold at the end of the COVID-19 rainbow.

What makes the rally off the March lows all the more cynical and confounding is that the index - the Dow and S&P have performed well, but not quite at the level of the NASDAQ - has risen meteorically while at least 30 million people are out of work, whole cities and states had been shut down at some time, GDP shrunk in the second quarter by 31.7% (just reported), and protests have turned into major crimes scenes replete with looting, rioting, and arson in some cities.

So, what is the American public missing that Wall Street apparently has a grasp upon? The answer is tacit backing of every bank, financial and non-financial corporation listed on the various exchanges, to the tune of three trillion dollars and more to come.

When Wall Street gets a bailout these days, they do it with gusto. The American people, not so much. Congress remains on vacation, purportedly until Labor Day. With any luck, some of the more senior members of the august bodies we call the House of Representatives and the Senate will forget to come back to DC or get hopelessly lost on their way back.

Another million people filed first time unemployment claims last week.

That's all for today. Enjoy.

At the Close, Wednesday, August 26, 2020:
Dow: 28,331.92, +83.48 (+0.30%)
NASDAQ: 11,665.06, +198.59 (+1.73%)
S&P 500: 3,478.73, +35.11 (+1.02%)
NYSE: 13,042.54, +40.55 (+0.31%)