Vaccine Hope Lifts Stocks

After the previous Friday close, the Fed warned of significant declines if the pandemic worsens and here’s an article that explains a big issue with the Fed executing the current money-printing plan. Monday, stocks in gained 0.7% in Asia, 4.0% in Europe, and 4.2% in the U.S. on massive volume. The VXO fell 9% to close at 29.06. The 10-Year U.S. Treasury bond yield shot up 16% to close at 0.74. Precious metals miners lost 2%. The Dow, S&P 500, NYSE, Apple, and IBM closed above their 24,000, 2900, 11,000, 310, 120 benchmarks respectively. The stampede for stocks came when prospects for a Wuhan Flu virus brightened.

Tuesday, stocks in Asia gained 1.7%, in Europe lost 0.6%, and in the U.S. lost 1.3% on very high volume. The 10-Year U.S. Treasury bond yield fell back 4% to close at 0.71. Precious metals gained 2% as their miners moved up twice that amount. Before the close, the vaccine euphoria that sent stocks soaring on Monday went up in smoke. Here’s an article that demonstrates the tenuous position of stocks.

Wednesday, stocks moved up 0.3% in Asia, 1.0% in Europe, 1.5% in the U.S. on extremely high volume. The 10-Year U.S. Treasury bond yield fell back 4% to close at 0.68. Precious metals miners lost 2%.

Thursday, stocks fell in Asia 0.6%, in Europe 0.8% and 0.6% in the U.S. on very high volume. The VXO gained 5% to close at 29.75. Precious metals gained 2% and their miners moved up twice that amount. IBM fell below its 120 benchmark. Friday, stocks in Asia fell 3.0%, in Europe closed little changed, and in the U.S. fell slightly on high volume despite the shortened trading day. The 10-Year U.S. Treasury bond yield fell back 3% to close at 0.66.

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