Posted on 07/12/2013 8:38:23 AM PDT by SeekAndFind
NEW YORK — Call it the Bernanke Boost.
The stock market, which has been marching higher for a week, got extra fuelThursday after Federal Reserve Chairman Ben Bernanke said the central bank will keep supporting the economy.
The Dow Jones industrial average and Standard & Poor’s 500 surged to all-time highs. And the yield on the 10-year Treasury note continued to decline as investors bought bonds.
Stocks that benefit most from a continuation of low interest rates, such as homebuilders, notched some of the biggest gains.
The chairman made the comments in a speech late Wednesday after U.S. markets had closed, saying the economy needs the Fed’s easy-money policy “for the foreseeable future.”
The U.S. economy needs help because unemployment is high, Bernanke said. His remarks seemed to ease investors’ fears that the central bank will pull back on its economic stimulus too quickly. The Fed is currently buying $85 billion a month in bonds to keep interest rates low and to encourage spending and hiring.
Stock index futures rose overnight. Stocks surged when the market opened Thursday and stayed high for the rest of the day.
“The Fed has made it unequivocally clear that they are not in any hurry to do anything,” said Alec Young, Global Equity Strategist at S&P Capital IQ. “It’s very bullish for stocks.”
The S&P 500 index jumped 22.40 points, or 1.4 percent, to 1,675.02, surpassing its previous record close of 1,669 from May 21. The index rose for a sixth straight day, its longest streak in four months.
The Dow rose 169.26 points, or 1.1 percent, to 15,460.92, above its own all-time closing high of 15,409 set May 28.
The Nasdaq composite rose 57.55 points, or 1.4 percent, to 3,578.30, its highest level in nearly 13 years.
(Excerpt) Read more at decaturdaily.com ...
The Fed’s “stimulus” policy of buying government buying up government bonds is having a narcotic effect on the stock market.
To me it looks like the greatest Ponzi scheme in the annals of recorded human history. Robbing Peter to pay Paul with money manufactured out of thin air.
With the FED spending $85B a month the stock market is no longer a Market.
What isn’t subsidized and undermined by Bug Gubamint and its unelected thugs in 3 piece suits and black robes?
Meanwhile UPS says the economy is in the tank.
This is all do to Games by the fed and treasury. Normal people pay the price every for these games every time they buy something.
Fraud is all that is left.
Just wait until that $1,000,000,000,000 a year the Fed is pumping into it evaporates.
Too late, it’s down now.
With bond yields so small you need a Microscope to see them, it’s no wonder people are buying equities.
The newscaster on NBC this morning said that one of the reasons the market was going up was because of “increased hiring”. I looked at my wife and we both said “What did she just say??”
Amazing.
Yes. Most drugs make life seem exceedingly wonderful at the time.
I liked the trickle-down economic model better than this trickle-less economy we have been watching Wall St. and Obama celebrate.
And gas prices in midstate PA shot up 20 cents in less than a week.
Up, up, and away......yeeeehah! /sarc
More nonsense. 15,460 in 2013 = 11,400 in 2000.
Numbers that are not adjusted for inflation are useless.
The title could just as easily have been .. “Dollar Hits Record Low!”
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