U.S. markets and stock exchange traded funds strengthened Monday on hopes of a recovery as more states begin to roll back lockdown measures.

On Monday, the Invesco QQQ Trust (NASDAQ: QQQ) was up 0.5%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) gained 1.1%, and SPDR S&P 500 ETF (NYSEArca: SPY) rose 1.3%.

Colorado, Mississippi, and Tennessee were set to join other states in reopening their local economies this week, despite warnings from health experts, Reuters reports.

“We don’t yet know the full scale and the pace of lockdowns being eased, but it’s important for confidence,” Edward Park, deputy chief investment officer at Brooks Macdonald, told the Wall Street Journal. “Suggestions that factories will restart sooner rather than later suggests that the pressure on economic output in the data we’ve seen will be a shorter-lived phenomenon.”

The coronavirus pandemic has wreaked havoc on the U.S. economy, with first-quarter gross domestic product expected to contract 4% as the shutdowns weighed on production, supply chains, and consumer spending, triggering millions in layoffs.

“Everyone’s excited that we will reopen, and there’s optimism around that but I would be a little concerned because what we really need is to return to normal for the markets to keep up with the optimism,” Julia Carlson, chief executive of Financial Freedom Wealth Management Group, told Reuters.

However, some observers warned that the growing economic damage could limit further upside gains, and a real solution to the coronavirus would help bolster confidence.

Looking ahead, investors will be watching for the Federal Reserve’s meeting ending on Wednesday.

A busy week of quarterly earnings reports, including tech giants like Apple and Microsoft may also provide clarity on how Corporate America stands during the coronavirus outbreak.

“Earnings are in some ways like economic data coming in – abhorrent at the moment, but something that markets will try and look through when that’s negative,” Edward Park, deputy chief investment officer at London-based firm Brooks Macdonald, told Reuters. “What really matters is – are we seeing progress in terms of new case growth, or what will easing of the lockdown look like, and which sectors will be involved.”

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