Why the Market Is Booming and the Economy Is Struggling | Stock Market News

Why is the stock market going up when the economy is in trouble?

If you’re an investor, this question has likely been on your mind. After all, we’re in the middle of the scariest pandemic in a century. Some businesses are barely scraping by, while millions of unemployed Americans have relied on enhanced government programs to stay afloat – yet the markets are hitting new highs.

To understand the disconnect between the markets and the economy, it’s helpful to understand what defines the U.S. economic system and the stock market.

The economy is the system under which money, industry and commerce are organized. Economic health is measured by employment and production growth. The system in the U.S. is considered capitalistic, driven by supply and demand, with a mix of government involvement and socialist-type policies such as Social Security and Medicare.

The stock market refers to a public marketplace in which

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Struggling airlines lead U.S. planned job cuts in August: report

WASHINGTON (Reuters) – U.S. employers announced another 115,762 job cuts in August, led by struggling airlines as the COVID-19 pandemic weighs on travel and financial assistance from the government lapses.

Though the layoffs reported by global outplacement firm Challenger, Gray & Christmas on Thursday were 56% down from July, they lifted total job cuts so far this year to a record 1.963 million. The previous all-time annual high was 1.957 million in 2001. Companies announced 160,411 hiring intentions in August.

“The leading sector for job cuts last month was transportation, as airlines begin to make staffing decisions in the wake of decreased travel and uncertain federal intervention,” said Andrew Challenger, senior vice president at Challenger, Gray. “An increasing number of companies that initially had temporary job cuts or furloughs are now

making them permanent.”

The report followed news on Wednesday that private employers hired fewer workers than expected in August.

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