Best performing stock market sectors of COVID-19 era: factors behind the success of healthcare and consumer staples sectors

Sahnaz Kocoglu, Aybuke Yalcin and Cemre Eda Erkilic

International Journal of Economics and Business Research, 2023, vol. 26, issue 3, 307-324

Abstract: In the study, we investigate the impact of S&P500 index, the number of COVID-19 cases, VIX index and oil prices on the stock market performance of healthcare and consumer staples sectors during the pandemic as these sectors have emerged as the best performing sectors in the USA in the era of COVID-19. We employ ARDL approach and Granger causality over the period 6 April-30 October 2020. ARDL bounds test results reveal that the number of cases had a positive effect on both sectors while the financial markets were adversely affected by the increasing number of cases. Moreover, decreasing oil prices driven by the negative economic expectations positively affected the sectors. The number of cases and VIX index granger cause the healthcare sector index while both sector indices cause the oil prices. This study is the first to investigate the factors behind the success of healthcare and consumer staples sectors.

Keywords: S&P 500; COVID-19; consumer staples; healthcare; stock return; consumer behaviour; ARDL approach. (search for similar items in EconPapers)
Date: 2023
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