Well, the recovery is complete, at least on the stock market.
The S&P 500 reached new record highs on Tuesday, driven primarily by Amazon’s immense rally. And you shouldn’t expect anything else from a Federal Reserve pumping trillions of dollars into Wall Street.
The benchmark index had topped 3,395 in intraday trading before paring some of its gains. This means the S&P 500 has been in a renewed bull market since hitting the bottom on March 23.
The tech-heavy Nasdaq Composite Index also touched a record high for the second consecutive session on Tuesday of 11,191.
Also, interesting numbers from Reuters:
Declining issues outnumbered advancers for a 1.34-to-1 ratio on the NYSE and for a 1.67-to-1 ratio on the Nasdaq.
The S&P index recorded 29 new 52-week highs and no new low, while the Nasdaq recorded 61 new highs and 14 new lows.
With the Fed set to maintain its do-whatever-it-takes approach to monetary policy, the boom is likely to last. Even if a second wave strikes the United States, the crash will not be as horrific because of low interest rates and unlimited quantitative easing.
It should be interesting to see what the Federal Reserve’s July minutes will show on Wednesday.
Money printer go brrr indeed.
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