These two sources helped me understand more about what is happening and why:
1.
* Sectors of the economy are down, such as energy (-50%), consumer discretionary (-27%) and financials (-22%).
* A few are up, such as health care (+5%), consumer staples (+6.5%), information technology (+8.5%).
* Market cap of the S&P500 hasn't changed dramatically, but the distribution of that money has switched to tech some which are up 50% or more.
Source: https://twitter.com/calvinfo/status/1254635755671969793
2.
* The stock market is not the economy.
* It is a forward looking pricing machine.
* It incorporates expectations about the future into stock prices today.
* Economic news looks at what has already happened, often way after it has happened.
* Hence stock prices shift if economic news does not match what investors already expect ie. more positive news than investors expected means stocks go up, more negative news than investors expected means stocks go down.
Source: https://youtu.be/0ECqDaPjjV0