S&P 500 Index and COVID-19

Abstract

In this paper, I study the impact of the COVID-19 on S&P 500 index using daily data from January 1, 2020, to May 12, 2020. The result shows that the number of confirmed cases, the number of deaths, and the number of recovery cases are the main parameters that affect the S&P 500 index. The first corona case in the USA is found on January 21, 2020. During March, the S&P 500 price fell by almost 31% and reached $2,237.40. The result shows that as the number of daily cases increases, it severely affects the S&P 500 index. But, as the number of deaths increases, the S&P 500 index's reduction is more severe with the rise of new cases. However, there is a little bit of positive effect of the new recovery cases on the S&P 500 Index.

Keywords: COVID-19, S&P 500 index, daily new cases, daily new deaths, daily new recovery cases

JEL Classification: F44, G15