Influence of COVID-19 Pandemic on the Stock market Performance: Comparison of UK and USA


Aim: COVID-19 had substantially led to financial volatility across the globe. Economies throughout the world have been jolted due to the pandemic crisis which subsequently led to economic instability. This study’s objective, in light of the recent COVID-19 epidemic, was to evaluate the disease’s effects on stock performance, specifically by contrasting the UK with the USA.

Method: The secondary quantitative method has been deployed in order to assess the stock performance in UK and USA under the prevailing pandemic crisis. The data for the study was derived from Yahoo finance and Investing.com, covering the period of 2017 to 2022. For data analysis, descriptive statistics, ANOVA and paired sample t-test were used through using SPSS software.

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There have been several plagues and outbreaks throughout the world. The COVID-19 virus was responsible for the most recent deadly infection that has been spreading throughout society. This virus has been deemed unique due to its wide range of health effects and high infection rate. The current economic slump differs from prior ones such as Great Depression of the 1930s and the Great Recession of 2007-2009 due to the various ambiguous financial linkages it entails (Wallace, Li and Hyde, 2022). Concerns about the 2019 Coronavirus Disease (COVID-19) and government rules meant to limit inter-person interaction were the main causes behind it. The stay-at-home and contact-restricting orders, along with public health anxieties, reduced firms’ working capital and increased unemployment. The COVID-19 pandemic-induced global recession forced the OECD, IMF and World Bank to adjust their estimates, which showed a considerable decline in the extrapolated growth rate for late 2019 and mid-2020 (Choi, Kim and Lee, 2022). With projections of global GDP growth dropping from +3.4% to 4.4% in October 2019 and October 2020, the IMF data showed this deterioration. The OECD also amended their prediction, which decreased the growth rate from favorable 2.9% in November to 4.5% in September 2020. (Hatmanu and Cautisanu, 2021).

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