Friends,
It’s appears, at least for a day, that market participants decided not to fight the Fed. Stocks soared higher right from the opening bell and never really looked back. Not everything was a winner but the move higher in the winners greatly outpaced the losers.
By the close, the Dow Jones Industrial Average was up 522 points to finish the day at 42,025. The S&P 500 was up 95 points to close at 5,714. The Nasdaq Composite Index was up 440 points to close at 18,014. Gold was up $13.50 to trade at $2,612 per ounce, while oil was up $1.02 to trade at $71.93 per barrel WTI.
Now with the Fed’s easing cycle having begun, and that tailwind at their backs, market participants will be faced with the headwinds of valuation. We are not starting this accommodative cycle at bargain prices. Stocks aren’t cheap but will the Fed’s tailwind provide enough momentum to make valuation a moot point? We will see. Let’s see how the week finishes out tomorrow first.
Have a nice evening everyone.
