Skip to comments.Fed gives Dow best day of the year
Posted on 03/21/2007 1:50:01 PM PDT by Signalman
NEW YORK (CNNMoney.com) -- Stocks and bonds rallied Wednesday as investors read the latest Federal Reserve policy statement as implying that the central bank is more likely to cut rates than raise them anytime soon.
The central bank also soothed the market by downplaying the impact of the fallout in the subprime lending sector by not acknowledging it at all, a surprise to some investors.
The Dow Jones industrial average (up 154.70 to 12,442.80, Charts), the Nasdaq (up 47.71 to 2,455.92, Charts) composite and the broader S&P 500 (up 23.88 to 1,434.82, Charts) index all surged, according to early tallies, with the Dow seeing its best one-day point gain of the year. All three major gauges had posted slim gains ahead of the news.
Treasury prices rose, lowering the corresponding yields. The dollar fell versus other major currencies.
(Excerpt) Read more at money.cnn.com ...
S&P up 1.6%. Good day!
This is very very good for oil, NG and PM. Thank you Bernanke.
Anyone know where we are on the year in the three indexes?
The stock buyers will have a hangover tommorrow, then they'll remember that the Fed doesn't lower rates until there is some real pain felt in the economy.
They weren't downplaying anything. They simply don't care.
Fed will lower rates the moment Fed tax receipts are down.
Down in every currency except $US. We run the printing press for those. LOL.
That makes sense to you and me, but most politicians equate tax receipts with tax rates.
Yes, so true. We will have lowering economic activity bringing lower Federal tax receipts and the politicians will conclude that tax rates aren't high enough. FDR to the rescue (90% rate). Weren't the 1930's grand?
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