Stocks enjoyed a nice rally today, perhaps fueled by continuing weakness in the bond market. The drift higher of interest rates seems to have helped alleviate the “recession is looming” fears, and today’s PPI number was meek enough to keep the Fed firmly on track for a rate cut next week.
By the close, the Dow Jones Industrial Average was up 227 points to finish the day at 27,137. The S&P 500 was up 21 points to close at 3,000. Gold was up $5 to trade at $1,504 per ounce, while oil was down $1.36 to trade at $56.04 per barrel WTI.
We get a look at consumer prices tomorrow, but like the PPI today, we really don’t expect any fireworks. The market seems content in the belief that the Fed will cut rates by a quarter of a point next week. That combined with a slow climb of longer term rates, is calming the nerves of “inverted yield curve” worriers (like me). Let’s see how the rest of the week plays out.
Have a nice evening everyone and take a moment to hug a loved one. We’ll will never forget 9/11.