Monday, stocks fell 1.1% in Asia and 1.8% in Europe. In the U.S. they moved quite a bit during the day, but closed nearly unchanged on moderate volume. The VXO fell 14% to close at 21.73. The 10-Year U.S. Treasury Bond yield shot up 4% to end the day at 2.23% while precious metals lost 2% and their miners fell three times that amount. Perhaps part of the market action could be attributed to to Hilsenrath’s latest article talking down recent hawkish Fed expectations.
Tuesday, stocks rose 1% in Asia, 2.9% in Europe, and 1.2% in the U.S. on moderate volume. This rise brought the NYSE index back above the 10,000 mark again. The VXO fell 8% to close at 19.93. The 10-Year U.S. Treasury Bond yield gained 2% to end the day at 2.27%.
Wednesday was the big day. Stocks rose 1.5% in Asia, 0.3% in Europe, and 1.6% in the U.S. on moderate volume. The VXO fell 11% to close at 17.65 fueled by the FOMC statement to raise interest rates gradually. Precious metals gained 3% and their miners shot up about twice that amount.
Thursday, stocks rose in Asia 1% and in Europe 1.3%, but they fell in the U.S. 1% on moderate volume. The VXO ramped up 10% to close at 19.34 while precious metals were hammered 2.5% and their miners three times that amount as the dollar strengthened. Oil fell 2% to close at 34.73, and the 10-Year U.S. Treasury Bond yield fell 2% to end the day at 2.24%.
Friday, stocks fell 0.8%, 1.1%, and 1.4% in Asia, Europe, and the U.S. respectively on typical volume for a quadruple witching day. This was enough negative action to drag the NASDAQ below 5000 and the NYSE below 10,000. The VXO gained 10% and above the 20 benchmark to close at 21.21 and the 10-Year U.S. Treasury Bond yield fell 2% to end the day at 2.20%. Precious metals and their miners shot up 3%. While the week had some wild swings, in the end, perversely they ended up about where they started.