After just three months, the Covid-19 pandemic that put the whole world in lockdown isn’t that newsworthy anymore.
At least to the market, that is.
This may seem strange, even flippant. After all, about 1,000 Americans still die of Covid-19 every day, and most states are still under some form of lockdown or restrictions.
And yet the markets don’t react to news about Covid-19 anymore.
For example, Texas was one of the first states to begin reopening. This past Saturday, the Lone Star State reported its highest increase in Covid-19 cases yet.
Traders shrugged it off.
North Dakota and Alabama are also seeing a rise in new cases after beginning to reopen.
These are numbers that a month ago would have sent traders into a tizzy.
But this weekend, traders ignored it.
Maybe traders have just gotten tired of hearing about the pandemic, and of being locked up at home. Maybe they think the pandemic is now “under control.”
I’m sure they and others do, to some extent.
But what’s really happening here is very different.
See, this perception that the pandemic doesn’t matter to the stock market anymore – it’s wrong – as we saw on Monday morning when the Moderna (MRNA) Phase 1 vaccine trial data helped add fuel to the fire lit underneath markets by Fed Chair Powell.
The pandemic is definitely the most important issue for the economy, the markets, and for traders…
Just not right now.