It is summer, and roller coasters are really popular in the summer. Unfortunately, I’m not very fond of roller coasters, and particularly when they appear in the stock market. Today was a doozy. Responding to tumbling interest rates around the globe, stocks took a nose dive early this morning with the Dow falling nearly 600 points. By midday, buyers began to appear and the losses were basically erased by late afternoon trading.
By the close, the Dow Jones Industrial Average was down 22 points to finish the day at 26,007. The S&P 500 was up 2 points to close at 2,883. Gold was up $25 to trade at $1,509 per ounce, while oil was down $1.23 to trade at $52.40 per barrel WTI.
At one point this morning the yield on the 10 Year Treasury note fell all the way to 1.61%. By the end of the day, the yield had crept back up over 1.71%, but bonds are really a bigger story than stocks at the moment. Rates around the world continue to plunge with what seems like half of the globe sporting negative yields on its debt. Kind of hard to imagine negative yields isn’t it? Why would I pay someone to borrow money from me…….
Have a nice evening everyone.