S&P 500 Cons Staples Futures Market News and Commentary
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The S&P 500 Index ($SPX) (SPY) on Wednesday closed up +1.97%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +1.88%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +1.97%.
Stocks on Wednesday rallied sharply on a plunge in T-note yields. Stock indexes recovered from overnight losses on a drop in global bond yields after the Bank of England (BOE) unexpectedly ramped up QE.
The 10-year T-note yield Wednesday fell from a 14-year high of 4.015% and fell sharply by -25.2 bp to 3.693%. The 10-year UK gilt yield fell back from a 14-year high of 4.591% and plunged -49.4 bp to 4.012%.
The BOE announced Wednesday that it would buy long-dated government bonds beginning Wednesday "to restore orderly market conditions. The bond purchases will be carried out on whatever scale is necessary to effect this outcome." The BOE’s rescue-action action Wednesday sparked a rally in global government bond markets as the markets hoped that other ke... Read more