There's a mistaken belief on WSB and elsewhere that bad news should make stocks go down. Stocks go up when the market thinks they'll be more valuable in the future, that's all there is to it. The cash will flow into the assets that provide the greatest returns, and right now that's stocks.
Since treasuries provide almost no return, and corporate bonds are at high risk of default, the money will move into stocks because 1) the US government is hellbent on making sure big companies don't fail and 2) the Federal Reserve is prepared to buy unlimited treasuries and mortgage backed securities at any price.
If corporate bonds (debt) are at high risk of default, why would there be investment in those same companies' equity which is even higher risk?
The fact that treasuries are providing no return tells you that most money is invested there "safely".
The problem of course is that the USG should be making sure small companies don't fail, because that's the actual driver of the economy both for employment and consumption.
Bonds and stocks move differently. The market has already re-priced the stocks of these companies to account for the risk of default on their debts.
The US government has also signaled that they will bail out these debts, so the companies themselves (and thus, their stock) will probably be fine even if they stop paying their debts.
Since treasuries provide almost no return, and corporate bonds are at high risk of default, the money will move into stocks because 1) the US government is hellbent on making sure big companies don't fail and 2) the Federal Reserve is prepared to buy unlimited treasuries and mortgage backed securities at any price.