5 Biggest Wall Street Stories Of The First Nine Months Of 2020

The coronavirus pandemic played foul in the stock market for the most part of the first nine months of 2020. After slipping into bear territory in March, Wall Street staged an astounding rebound, buoyed by a surge in the technology sector, massive stimulus program, and hopes of a coronavirus vaccine. In fact, the Wall Street wrapped up the best August in 36 years.

The rally fizzled in September — a historically weak month — on resurging coronavirus cases and concerns over elevated valuations. All three major indices are on track for their first monthly declines since March. Despite the recent losses, the S&P 500 and the Nasdaq Composite Index are on course for their best two-quarter winning streaks since 2009 and 2000, respectively.

Below we discuss some of the events that dominated the headlines in the first nine months of 2020 and are worth watching in the rest of the year:

Fed Easing Policy

The Fed slashed interest rate to a range of 0% to 0.25% in mid-March and is expected to keep rates at lower levels until the end of 2023. The central bank will not increase rates until labor market conditions return to the “maximum employment,” and inflation rises to 2% and “is on track to moderately exceed 2% for some time.” As such, it will continue to purchase at least $80 billion a month in U.S. Treasuries and $40 billion a month in mortgage-backed securities to make market movements smooth and “foster accommodative financial conditions.”

Though the U.S. economy has bounced back faster than expected, the central bank warned that the full recovery is still far away and will continue to face risks due to the ongoing pandemic.

In this backdrop of a low-rate environment, investors are in search of juicy yields. And nothing is better than high-yield dividend stocks. Uniti Group Inc. (UNIT - Free Report), with a dividend yield of 6.04%, seems a compelling choice. This real estate investment trust company is engaged in the acquisition and construction of mission-critical infrastructure in the communications industry. The stock has a Zacks Rank #2 (Buy) and a VGM Score of B.

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