The 2.90 percent close of the Ten Year Treasury Debt eclipses many features of today’s market. Our diagram reveals that two years have elapsed since the rate was that high. While interest rates and stock price run in opposite directions, the high rates in 2009, however, parallel the bull market gains of the S&P500.
Nevertheless, the tenor of the bond market and the open market purchase policies of the Federal Reserve deserve front-burner consideration.
Finally, after six losing days the DJIA posted a gain. Yet the DJIA closed below the 15,000 level for the second day in a row. Also today’s .86 percent gain of the S&P500, coincidentally, just about equals its average daily increase in this, since March 2009, expansion.
DJIA .44 percent
NASDAQ 1.08 percent
S&P500 .86 percent
