Well, today’s stock market rally was a bit of a surprise. Just the hint that there might be some meeting of the political minds with regards to tax reform seemed to fire up the animal spirits (or scare the shorts a bit) of market participants. Whatever the reason or cause, we haven’t seen this type of across the board strength in equities in quite some time. Again, perhaps some of this move could be attributed to the bears covering some shorts. Can’t be sure.
By the close, the Dow Jones Industrial Average was up 196 points to finish the day at 21,899. The S&P 500 was up 24 points to close at 2,452. Gold was down $5 to trade at $1,291 per ounce, while oil was up $.27 to trade at $47.65 per barrel WTI.
Remember, we get central banker speeches later in the week at Jackson Hole, but until then we continue to deal with rumors out of Washington with regards to fiscal policy. We already know the corner that central bankers have backed themselves into with regards to monetary policy. Can the Republicans work their way out of the doghouse and produce some real tax legislation? Time will tell.
Have a nice evening everyone.