Recent surges on Wall Street come as pleasant surprise to many. Thanks in part to the excellent earnings of consumer brands like Best Buy, ConAgra Foods, and Dr Pepper Snapple Group, stock prices are on the rise. This resurgence has undoubtedly been aided by the Treasury Department’s recent debt auction.
Earlier fears on the part of investors were allayed by the impressive demand for government debt. The government’s ability to finance its endless string of bailouts and economic stimulus initiatives was very much in question.
As of Thursday, March 26, the Dow average finished at the highest level in almost six weeks, 174 points. The index has experienced a 21% increase since hitting an astounding twelve year low back on March 9.
While this market advance does look wonderful, many market analysts make the obvious point that any ground gained can be quickly lost, especially in a shaky economic climate. No matter the market gains, the increasing unemployment rate, restricted access to credit, as well as the sheer volume of personal and corporate debt will hinder continued growth.
Still, with the end of the first quarter rapidly approaching, there are some financial managers are adamant that they do not want to miss the boat when it comes to the recent Wall Street rally. Such an upward surge is normally spread out over the course of several years, not mere weeks.
Those who have had a substantial stake in the performance of markets, the serious buyers and sellers, have had to face the fact that they may have sold their stocks to quickly back in January and February. Of course, the consequences of these bouts of “seller’s remorse” may equal a new cycle of buying. There is a sense that the markets may well bottom out in 2009 and that is making many people more optimistic about the recovery of their portfolios.
The statistics for Thursday showcase the impressive gains. The Dow jumped 174.75, or 2.3 %, at 7,924.56. This was its highest close since Feb. 12.
The Standard & Poor’s 500 index rose 18.98, or 2.3%, to 832.86, and the NASDAQ composite index rose 58.05, or 3.8%, to 1,587.00.
Tags: point, market, Investing, recent debt auction, highest level, government, Recent surges
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