Rate Cut Inspired Rally Continues
September 19, 2007 – 7:03 pmIf you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
The recent cut in the Federal Funds Rate yesterday has inspired a ton of confidence in the stock market. The Dow Jones is up 7.6% since it closed at 13,000 one month ago.
The S&P 500 is only 25 points away from its record close, set on July 19.
Breadth was positive and volume was strong. On the New York Stock Exchange 3.73 billion shares changed hands. Volume on the Nasdaq reached 2.12 billion shares. Winners outpaced losers about 2 to 1.
Major averages in the U.S. had one of their best performances of the year on Tuesday after the Federal Open Market Committee, the central bank’s policymaking arm, cut interest rates by 50 basis points. Most analysts had anticipated a cut of only 25 basis points. It was the first rate cut in more than four years.
So far sentiment remains high and the market is up. So far traders are not upset about the prospects of $82 per barrel oil, but that sentiment could change in a heartbeat.
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One Response to “Rate Cut Inspired Rally Continues”
I’m kind of glad that the FED cut the interest rates, but it’s really more of psychological fix. We don’t know if this will have any real impact in the housing crisis, if any.
By Sam on Sep 23, 2007