Wednesday began as carbon copy of Tuesday’s action with a big gap up at the open and looked very similar until up to 3 PM. But instead of falling off a cliff, buyers came in and there was another surge to close out the day in the last 90 minutes. The S&P 500 gained 3.90% and the NASDAQ 4.24%. It is feeling a lot like late 2007 thru early 2009 when 300-500 DOW swings were normal. The Federal Reserve did what it has done relentlessly since 2008 – try to boost the market with either actions or words.
New York Fed Bank President William Dudley said Wednesday the upheaval has reduced the case for raising rates in September, while cautioning it’s important not to overreact to short-term developments.Continue reading