This article is brought to you by a Russian Telegram channel "Antihype on money," an analytical channel about all economic hype trends and their triggers.
What happened: S&P 500 hits historic highs at the opening of markets on Tuesday, pulling the Euro Stoxx 600 to the new highs. Nasdaq has been facing with this rally on a daily basis since February 4.
Amid threats of a sharp cooling growth of the U.S. and European economy due to the coronavirus expansion and the burden of debt on the economy, the market rally looks like a pure madness and is a harbinger of a big collapse, if not today, then, conditionally, tomorrow.
What really happened: The market rally is powered by easy money from the largest central banks and is based on strong macroeconomic publications, as well as impressive company reports.
Recent publications, generally, exceed analyst expectations, pulling markets upward by reassessing expectations. If news storm continues, markets rally can also continue its gains for a long time, leaving those who short the market at a loss.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.