Market opens in rally mode, at the highest levels for 2016. The losses have been erased with the DOW and S&P firmly in the green. With just 2 trading days left in Q1, this could be the first Qtr since the Q4 of 1933 to be down at least 10% and then finish green. Now that’s quite an feat. Fed Chair Janet Yellen did it again. Her dovish comments yesterday sent global stocks higher, interest rates lower and the Dollar sliding. The Fed still drives the Market. The question now, is how much is the Market driving Fed policy.
In her speech yesterday, Janet Yellen said global and financial uncertainties posed risks to the US economy and justified a slower path for rate increases. Yellen basically doubled down on what she said following the March Fed meeting. The other Fed presidents who contradicted her last week, got blown out of the water. Yellen made it clear there will be no hike in April, and reiterated that the likelihood at this time would be 2 hikes for the year. The Market likes it.
Have a great day.