Evercore Leans Bullish With Five Reasons Stocks Didn’t Tank

The apparent dichotomy between bad news on the economy and resilience in the stock market isn’t such a mystery for the strategists at Evercore ISI, who remain unswayed by dark warnings from Wall Streetheavyweights.

Deepening U.S.-China tensions, worries over fiscal authorities stepping off the accelerator, a surge in unemployment and fears about a second wave of coronavirus infections along with other downbeat headlines all make it notable that the S&P 500 Index only fell 2.3% last week, Evercore strategist Dennis DeBusschere wrote in a note Sunday. The key counterpoint has been moves to reopen businesses around the world.

“Human ingenuity will allow for a gradual resumption of economic activity,” for all the negative recent developments, DeBusschere wrote. “We lean toward positive outcomes.”

DeBusschere listed several reasons for the staying power of the rebound in stocks from a March low: