Global Stocks Surge, Yet Some Still Predict a Recession is Coming

There's a lot of uncertainty surrounding the economy right now as the spread of COVID-19 brings many businesses and personal spending habits to a halt.

A former Federal Reserve Chairman says that the coronavirus pandemic could even lead to a "sharp" economic recession - but a "fairly quick" rebound as well.

Ben Bernanke, who oversaw the Federal Reserve during the 2008 financial crisis, told CNBC that the recession will be "very sharp" but "short" due to so many businesses shutting down. Bernanke also believes the current crisis will be easier to rebound from than the Great Depression, calling it "closer to a major snowstorm or a natural disaster than a 30's-style depression".

But despite concerns, news that a deal had been reached on an unprecedented $2 trillion U.S. relief package helped most of Wall Street rebound on Wednesday:

The Dow closed 2.39% higher - up nearly 500 points to just over 21,200.

The S&P 500 gained 1.15% - ending the day just over 2,475.

And the Nasdaq was the outlier - settling 0.45% lower at 7,384.

Read more about the Dow's first back-to-back gain since February on The Wall Street Journal.


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