The Fed and Congress inspire an equity rally
Closing changes:
- S&P 500 +9.4% -- biggest since 2008
- DJIA +11.3%
- Nasdaq +8.0%
It was a great day to buy stocks as the market bets that Congress will come through with some kind of stimulus. There was also some major bargain hunting and short-covering. The four best performers on the S&P 500 were: L Brands, American Airlines, MGM Resorts, Norwegian Cruise Lines. Energy was the top-performing sector.
Every bottom starts with a bounce but not every bounce is a bottom. That said, bottoms are built on skepticism so my skepticism is only adding fuel to the fire.
The rally today is slightly bigger than the one that led Trump to email out this:
Of course that was followed by a 17.7% decline the following week.
Here is another notable:
In terms of the chart, it's humbling just how small a 9.4% rally looks on the S&P 500.
