Those fast market turnarounds are usually associated with no underlying economic issues. I don’t think we are in that scenario. Ultimately the markets are realizing that many (most?) Americans are going to be staying home and not out spending, and that has a huge economic impact.
Yes indeed. If the virus was eradicated today there has already been much economic damage which would take years to heal.
Also likely to create impact is heavy corporate debt. Latest tax and interest rate cuts encouraged corporate America to borrow heavily with really cheap money and spend it buying back shares.
So even though the company is no more profitable the share price skyrockets and people with stock suddenly find they own a larger piece of the company than they did before. Stockholders rejoice even though the root is borrowed money. It is like getting a huge home equity loan, depositing the proceeds in the checking account, and feeling richer, even though net worth did not change. All a house of cards finally starting to fall, courtesy of a virus.