Stocks Rebound Sharply in Response to Fedspeak

Monday, stocks rose 0.7% in Asia, 1.3% in Europe, and 1.2% in the U.S. on moderate volume. The VXO fell 14% to close at 20.39. The NASDAQ recaptured the 7000 benchmark. Tuesday, stocks gained 0.4% in Asia, fell slightly in Europe, and closed little changed in the U.S. on moderate volume. Precious metals miners fell 2% and IBM closed barely above the 120 benchmark.

Wednesday, stocks in Asia rose 1.2% while those in Europe closed unchanged. Fed chairman Powell gave the stock bulls a shot in the arm with what they interpreted as a less hawkish stance on interest rate hikes. In the U.S., stocks shot up 1.9%. This lifted the Dow above 25,000 and the S&P above 2700 again. Precious metals miners gained about 3% for the day.

Thursday, stocks in Asia gained 0.3%, in Europe gained slightly, and in the U.S. fell slightly on moderate volume. The big news again was from the Fed as the minutes from the most recent FOMC meeting were released 5% to close at 21.35. Friday, stocks in Asia closed nearly unchanged, in Europe they were little changed, and in the U.S. they gained 0.6% on high volume.

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