The Major Indices began the week with a bang as investors cheered a 3% climb in third quarter Manufacturing, but the upside momentum stuttered briefly Tuesday as the Fed deliberated decisions affecting ongoing stimulus measures and key interest rates.
The outcome of these discussions sent the market into a state of euphoria as the Fed announced they would be cutting back the current stimulus measures by $10 billion but leaving key interest rates untouched (for now). The Dow, S&P 500 and Nasdaq celebrated this good news by soaring 1.8%, 1.7% and 1.2%, respectively.
These big gains were only temporary though. Thursday’s slide in existing home sales and disappointing increase in jobless claims reminded investors that the economy may be on the mend but is still bruised.
A concern that was somewhat alleviated by Friday’s GDP report which showed that the economy grew at its fastest pace in two years in the fourth quarter.
When all was said and done, the Major Indices closed the last session of the week at record highs with the Dow up 0.26% to close at 16,221.14, the S&P 500 up 0.48% to close at 1,818.32 and the Nasdaq having the biggest win, gaining 1.15% to close at 4,104.74.
Overall, the Dow, S&P 500 and Nasdaq experienced their best week in the last five months as optimistic economic news boosted investor confidence that the economy could withstand the tapering of the stimulus. And that's The Market In Review.
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