Friends
As per our discussion earlier in the week today was an “inflation on” day. We saw the long bond move back up nicely in yield and stocks rocket higher from the opening bell. After market participants spent the week wringing their hands over the move in the bond market there was a sigh of relief today when yields moved higher.
By the close, the Dow Jones Industrial Average was up 447 points to finish the day at 34,869. The S&P 500 was up 48 points to close at 4,369. The NASDAQ Composite Index was up 142 points to close at 14,701. Gold was up $10 to trade at $1,811 per ounce, while oil was up $1.71 to trade at $74.65 per barrel WTI.
It’s kind of funny how traders who typically yearn for and only feel comfortable with lower interest rates/bond yields got spooked this week when rates fell “unexpectedly”. But today’s reversal sending rates higher made traders feel better that they do indeed have a good read on inflation. Well, we’ll see about that over time of course. In the meantime we’ll buckle up for earnings season which begins next week.
Have a great weekend everyone.
