Friends
After yesterday’s pause, stocks were able to resume their recent rally once again today. In the meantime, bonds continue to sell off (rates moving higher). As a matter of fact, as we stand year to date, bonds are now down more than stocks. Vanguard’s Total Stock Market ETF (VTI) is down about 5.5% for the year, while Vanguard’s Total Bond Market ETF (BND) is down about 6.5% for the year. That is an interesting development.
As for today, by the close the Dow Jones Industrial Average was up 254 points to finish the day at 34,807. The S&P 500 was up 50 points to close at 4,511. The Nasdaq Composite Index was up 270 points to close at 14,108. Gold was down $7 to trade at $1,921 per ounce, while oil was down $.82 to trade at $111.30 per barrel WTI.
What is interesting is that the Fed’s hawkish plans, and Chair Powell’s and other Fed officials’ hawkish comments seem to be having diminishing returns when it come to market reaction. Of course, market participants still have a lot on their plate (Fed monetary policy, inflation, Ukraine) and this is no time to get complacent. But as a market observer (not prognosticator) it is a very interesting moment in time to observe market movements.
Have a nice evening everyone.
