Weekly Market Highlights - Sept. 14, 2012
Domestic stock prices ended the week sharply higher in a rally sparked by the Fed’s announcement that it would initiate QE3 in the form of an open‐ended bond‐buying program. Fed Chairman Bernanke and the Federal Open Market Committee is taking an extremely aggressive stance in attempting to spur job growth. The S&P 500 rose for the fourth consecutive day today, and reached its highest level since 2007. Global markets also surged on the week. Taking advantage of the full‐throttle, aggressive accommodation announced by the European Central Bank and the Fed the past two weeks, world markets posted strong gains. Emerging markets fared well, as investors are now in complete “risk‐on” mode.
Treasury prices tanked this week, and yields rocketed. Yields on the benchmark 10‐year Treasury jumped as investors digested what the Fed’s announcement may mean for inflation. The 30‐year Treasury yield surged the most in more than three years. As can be seen in the graph above, inflation expectations are on the rise.
Commodity indexes rose this week. Prices in each of he three primary commodities complexes – energy, precious metals and agriculturals – posted sharp gains with the Fed’s announcement.
| MARKET DASHBOARD | ||||
| Index |
Price |
Weekly Chg. |
% Chg. |
YTD % Chg. |
| S&P 500 |
1,463.11 |
24.43 |
1.7% |
16.3% |
| Dow Industrials |
13,593.37 |
286.73 |
2.2% |
11.3% |
| Nasdaq Composite |
3,183.95 |
47.53 |
1.5% |
22.2% |
| Russell 2000 |
864.70 |
22.41 |
2.7% |
16.7% |
| Euro Stoxx Index |
275.95 |
3.65 |
1.3% |
12.8% |
| Shanghai Composite |
2,123.85 |
-3.91 |
-0.2% |
-3.4% |
| 10-Year U.S. Treasury |
1.87 |
21 bps |
NM |
0 bps |
| DJ UBS Commodity Index |
152.01 |
4.75 |
3.2% |
8.1% |
| Gold |
$1,770.90 |
$35.43 |
2.0% |
13.2% |
| Crude Oil |
$98.98 |
$2.54 |
2.6% |
0.4% |
| U.S. Dollar Index |
78.86 |
-1.38 |
-1.7% |
-1.6% |
| VIX Index |
14.66 |
0.27 |
1.9% |
-37.4% |
| Source: Bloomberg | ||||
| As of September 14, 2012 | ||||