Stocks
are off to a wild start Friday with the Dow Jones Industrial Average and
S&P500 soaring into record territory after a surprise announcement from the
Bank of Japan to increase its stimulus package. Buying began overnight in the
Asian markets with the broad indexes up well over 1%. Japan’s Nikkei index
skyrocketed over 4% in Friday’s session as investors cheered the BOJ’s new
stimulus measures. Optimism carried over into European markets which are up
almost 2% in the final hours of trading. US investors kept the risk on trade
going just day’s after the Federal Reserve announced the ending of its stimulus
program known as quantitative easing.
Positive US economic data added to the enthusiasm early. Gold and oil
are both down with oil falling below $80 per barrel and gold hitting levels
unseen since 2010. With money flowing to equities treasuries were sent lower
causing interest rates to rise. The market has had a remarkable snapback in the
last 2 weeks with gains on pace for 4% in this week alone. Don’t be surprised
to see a pullback next week after this surprise rally.
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