5 Top Momentum Stocks For June As U.S. Economy Reopens

Wall Street is set to record back-to-back monthly gains in May as market participants applaud the gradual reopening of the U.S. as well as other major economies. A large section of economists and financial experts, who were skeptical about the growth of the U.S. economy just a month ago, are now expressing views of a quicker-than-expected recovery from the coronavirus-induced devastations.

Stock market's momentum is likely to continue in the coming months as the global economy will gather pace systematically after nearly three months of partial or full lockdowns.

Economy Reopens With Strong Pent-Up Demand

All 50 states have decided to ease lockdown restrictions and open up their economies in some form by this month end. Data from booking platform OpenTable revealed that in some states, U.S. consumers are slowly returning to restaurants. The Wall Street Journal recently reported growing freight trucking activities.  

Notably, the U.S. economy was performing well buoyed by strong consumer spending before the advent of coronavirus. However, the lockdowns imposed by the United Sates and across the world along with the breakdown of global supply chain system, significantly dented both consumer and business confidence.

However, an unprecedented $8 trillion fiscal and monetary stimulus injected by the U.S. government and the Fed has instilled investor confidence. Moreover, the central bank's decision to keep the benchmark interest rate at 0% will also make funds available to both businesses and individuals. Additionally, several Eurozone countries, Japan and the leading emerging market economies provided around $8-9 trillion of stimulus packages.

The Trump administration's decision to spend money in the form of unemployment insurance and giving stimulus checks to retirees, massive restructuring package to small businesses and the Fed's decision to inject money into the economy by means of purchasing even the high-yielding junk bonds are likely to create significant pent-up demand, fueling a quick recovery.

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