The stock market is more volatile than the economy.
Geopolitical tensions, external environmental affects, currency rates, also contribute.
The stock market is just a collective of speculators, with investors being optimistic towards the reopening of the economy. Markets have done well when news gets less bad.
Since mid-March, the fed has both cut interest rates to near zero, buying trillions of U.S. dollars of assets. Low interest rates encourage business to borrow at low costs. One of the things this does is set a floor for investors who assume that interest rates will be low for a while, giving them purchasing power. Multiple studies done that showed a good percentage of Americans using part of their $1,200 stimulus checks to trade stocks” (Fitzgerald, 2020). This can be directly correlated with Robinhood new accounts peaking 4 weeks after the checks began to ship (Bloomberg, 2020) and also Google Trend all time high’s for words like “Buy stocks” ( Google , 2020).
According to Pew Research, only 14% of U.S. families are invested in the stock market, with 52% having “some” investments via 401k or IRA’s. This mean that the gains disproportionately benefited a minority of the country. I think that it’s clear the stimulus positively affected Wallstreet while leaving Mainstreet behind.