Rally in US stocks ahead of today's FOMC meeting
NASDAQ WEEKLY MARKET PULSE
September 18, 2013
Better-than-expected Asian economic data and Larry Summers’ withdrawal from Fed Chairman consideration fueled a rally in US stocks ahead of today’s FOMC meeting
Markets moved higher after Summers’ announcement on speculation that any new Fed Chairman will be more dovish with respect to economic stimulus. All eyes are on today’s FOMC statement.
“Markets have done a lot of waiting as the Fed continues to release tidbits of information on the future of the bond purchasing program,” said Dave Gedeon, Managing Director of U.S. Global Indexes. “After the Fed meets and if it declares a path forward on QE, the market will get to turn to earnings and economic estimates to guide the market forward for the first time in years.”
Other notable index developments
Precious metal continued to fall with investors anticipating a reduction in the bullion-friendly stimulus. The NASDAQ Commodity Silver Index ER (NQCISIER) and NASDAQ Commodity Gold Index ER (NQCIGCER) fell -5.35% and -4.00%, respectively, week-over-week.
The NASDAQ EM Europe Index (NQEMEU) advanced by 3.15% over the past five trading days, helped by a rally on Monday on the back of news that Summers is pulling out of the Fed race.
Natural gas prices have been on the rise as investors are betting that supply data will climb as well as concerns about an increasingly active hurricane season in the Atlantic. The NASDAQ Commodity Natural Gas Index ER (NQCINGER) climbed 4.37% over the past five trading days.
EQUITY INDEXES: 9/11 - 9/17
|NASDAQ EM EUROPE INDEX (NQEMEU)||+3.15%|
|PHLX DEFENSE INDEX (DFX)||+2.80%|
|PHLX HOUSING SECTOR INDEX (HGX)||+2.44%|
|NASDAQ OMX GBL WATER INDEX (GRNWATERL)||+1.97%|
|NASDAQ EMEA INDEX (NQEMEA)||+1.48%|
COMMODITY INDEXES: 9/11 - 9/17
|NASDAQ COMMODITY SILVER INDEX ER (NQCISIER)||-5.35%|
|NASDAQ NATURAL GAS INDEX ER (NQCINGER)||+4.37%|
|NASDAQ COMMODITY GOLD INDEX ER (NQCIGCER)||-4.00%|
|NASDAQ COMMODITY PRECIOUS METALS INDEX ER (NQCIPMER)||-3.44%|
|NASDAQ COMMODITY CORN INDEX ER (NQCICER)||-2.67%|