Nasdaq, S&P 500, Dow Jones Talking Points:
- The week started with a bang as Chair Powell gave a very publicized interview with the television program 60 Minutes.
- In that interview, Chair Powell said that there were ‘no limits’ to what the Fed can do with the lending programs available to them.
- This was met with a strong risk-on response in global markets, with the Nasdaq[1] continuing the rally that’s shown as much as 42% from the March lows.
- Tomorrow’s economic calendar[2] brings FOMC[3] minutes.
Risk On Theme Continues as the Fed Pledges Continued Support
It’s not often that one can be too cranky about a 36.8% return in less than two months; but that case can currently be made around the S&P 500[4] considering the relativity of the matter.
Stocks got punished in February and March as fear was getting priced-in to the equation. Slowdowns were near certain as a large portion of the global economy shut down. Those shutdowns remain in effect more than two months later and this has been echoed through the economic data; such as the NFP[5] report from earlier this month that showed a whopping 20.5 million jobs lost in the prior month. The unemployment rate spiked up to an astonishing 14.7%, and this is mere months after that same rate was grinding near 50-year-lows. But through that NFP report, stocks have continued to rally, and there’s a big reason as to why: The government.
But that 36.8% rally in the S&P 500 from the March lows pales in comparison to the 42% move put in by the Nasdaq 100 over the same period of time. Also consider the fact that the initial bearish
