Friends
We were due. Stocks were getting very oversold as we had seen over the past weeks. Intraday rallies have been met with selling and by the end of trading days we seemed always to be heading lower. But today everything kind of reversed. Oil and gold dropped, bond yields moved higher, and stocks rallied and were able to hold onto gains into the close.
By the close the Dow Jones Industrial Average was up 653 points to finish the day at 33,286. The S&P 500 was up 107 points to close at 4,277. The Nasdaq Composite Index was up 460 points to close at 13,255. Gold was down $48 to trade at $1,995 per ounce, while oil was down $14 to trade at $109.67 per barrel WTI.
Did something change today? No not really. Bear market rallies are often sharp, even if they only last a day or two. Ukraine is obviously still unfolding, the Fed is just now going to begin to embark on a hawkish monetary policy, and inflation isn’t dissipating anytime soon. But as mentioned stocks seem to have gone down almost every day recently so a little reprieve from that in the short run is certainly welcomed and not really surprising. On the economic front jobs are plentiful as measured by another stunning JOLTs number today. We have more than 11 million jobs available in this country which does allow the Fed to simply focus on inflation in the near future. In the meantime, let’s see if the bulls can build on today’s move as we finish out the week.
Have a nice evening everyone.
