Friends
Interest rates applied the pressure and stocks faltered as the trading session wore on. Again, with the early morning spike in longer term interest rates the big growth names all tumbled at the open. But, as the day wore on, even though bond yields moved lower from the morning highs, even the Dow headed lower and closed at day lows.
For the day, the Dow Jones Industrial Average was down 153 point to close at 32,862. The S&P 500 was down 58 points to finish the day at 3,915. The Nasdaq Composite Index was down 409 points to close at 13,116. Gold was up $5 to trade at $1,733 per ounce, while oil was down $5.89 to trade at $58.71 per barrel WTI.
The concerns about a booming economy (I know, why is a booming economy a concern?) seemed to conflict with the beating that oil prices took today. But, the booming economy and subsequent inflationary pressures is what has longer term interest rates rising. That, and the fact that the Fed hasn’t indicated that they would be a buyer on the longer end to curb rising rates, is causing concerns in the bond market. How spoiled are market participants? “We” expect the Fed to help us out at everyone turn. It was a pretty good thrashing that the bears gave the bulls today. Let’s see how the week finishes up tomorrow.
Have a nice evening everyone.
