By Markus Heitkoetter
Stocks made a HUGE comeback today. But this morning things looked ugly.
Traders were nervous after Friday’s big drop. And the major indices opened the session lower. But comments from Fed Member Brainard (the last voting Fed member to speak officially ahead of next week’s Fed Statement) helped bring out the bulls.
Brainard urged “prudence” with a rate hike decision, and voiced concerns over low inflation and a plateau in the labor market.
The comments brought the Fed back into the spotlight again, and whether or not the Fed is ready to raise rates. And at the end of the session the probability of a September rate hike and dropped to 15.0% (down from 24.0% on Friday).
Once trading got underway, stocks rallied throughout the day and never looked back. And by the end of the session the major indices were sitting at highs of the day. Although the major indices didn’t erase all of Friday’s losses, they were able to get back to Friday’s open -erasing about 2/3 of Friday’s decline.
Here’s where the major indices ended the day:
- The S&P finished with a 1.5% gain. Up 31 points, the S&P ended at 2,159.
- The DOW ended 1.3% higher. Adding 239 points, the DOW closed at 18,325.
- The NASDAQ was up 1.7%. With an 86 point gain, the NASDAQ finished at 5212.
Today’s gain was the biggest for the S&P in over 2 months.And it was the first triple digit gain for the DOW this month.
Crude Oil (CL) also joined the recovery. With an 0.8% gain, CL ended at $46.26.
But the end of day numbers don’t tell the whole story…
Crude Oil had to recover from a 2.1% deficit this morning, just to get back to breakeven for the day! Today’s rebound was definitely more impressive than just an 0.8% gain.
There are no major items on tomorrow’s economic calendar. But there’s a lot to digest later on in the week.