Bears Run Scared as Stocks are on the Move
Without much in the way of clear-cut reason, the U.S. stock markets nevertheless made a nice move to the upside today as traders went long. The Dow gained 247, the NASDAQ added 62, and the S&P finished 31 points to the upside. Bonds also had a positive day, as the 10-year Note’s yield came in at 4.57% to close the day. The bottom line is that there were more buyers than there were sellers, which is what is going to drive the market.
Later this week, we look forward to numbers on Personal Income, Initial Claims, Personal Spending and more. Although the Fed didn’t offer any indication of a rate cut in its minutes release yesterday, the markets still saw a significant rally to the upside without any big news. Time will tell whether this was a simply short-covering rally or a genuine reversal.
Overseas, the Nikkei lost 1.69% and the Hang Seng slipped 1.5%.
Mike Tosaw Director of Education
