Monday, stocks gained 0.5% in Asia and lost 0.7% in Europe. Markets were closed in the U.S. in honor of President’s Day. Tuesday, stocks fell 1.1% in Asia, lost 0.6% in Europe, and fell 0.9% in the U.S. on moderate volume. This was enough to drag the Dow below the 25,000 level. The VXO rose 5% to close at 18.20. Precious metals and their miners lost 2%.
Wednesday, stocks in Asia rose 0.3% but in Europe and the U.S. closed little changed on strong volume. Minutes from the most recent FOMC meeting were about in line with expectations. The 10-Year U.S. Treasury Bond yield rose 2%, to close at 2.94, but the VXO fell 7% to close at 17.01.
Thursday, stocks fell 1% in Asia, fell slightly in Europe, and closed little changed in the U.S. on moderate volume. Stocks were positioned to decline in the U.S. but were boosted early when CNBC trotted Bullard out to make some dovish comments. Friday, stocks rose 1.2% in Asia, slightly in Europe, and 1.4% in the U.S. on moderate volume. The VXO fell 16% to close at 14.92 in honor of Christopher Columbus. The 10-Year U.S. Treasury Bond yield fell 2%, to close at 2.87. One factor for the strong late-day rally in the U.S. may have been the stable policy indications from the Monetary Policy Report released that day. The rally also propelled the Dow back above the 25,000 benchmark.