The Dow had a few not-so-good days recently, knocking it down a bit after the great run it has had this year. But today was a new day. It had the biggest one day gain in nearly a year! Many experts feel the stock market is not near the high yet that it will reach this year. Days like today certainly helps to boost the confidence of investors…
Stocks rebounded smartly Wednesday, propelling the Dow Jones industrial average up 187 points as bond yields eased and economic data came in stronger than expected.
The Dow saw its biggest point gain since July 19, 2006, and more than made up for a plunge a day earlier that was fueled by the benchmark 10-year Treasury note yield's surge to five-year highs. Rising bond yields amid inflation concerns had been pummeling stocks since last week.
Though rate worries still dog investors, their confidence perked up after the Commerce Department said Wednesday that retail sales jumped 1.4% in May. The rise, which followed a 0.1% decline in April, was the highest in 16 months and double the increase analysts expected. It signaled to the stock market that consumers plan to keep spending and pushing the economy along, even as gas prices and other costs increase.
Investors were also pleased about the Federal Reserve's beige book report, which said the U.S. economy kept expanding at a moderate pace in the first part of the second quarter. The central bank's next meeting on interest rates will be held in two weeks.
To learn more on this subject, read the complete article below from USA Today:
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