U.S. stocks rebounded in this week’s shortened trading schedule, nearly erasing the previous week’s losses, bolstered by some solid economic reports, dovish comments from Federal Reserve chair Janet Yellen on interest rates, and a possible easing of tensions between Ukraine and Russia late in the week. [Read more…]
With one day remaining in the first quarter of 2014, it looks like bonds will return close to 2% for the period, while for stocks the quarter will be pretty much a wash. Take the link below to our recap of the stock and bond markets in the week just ended and the quarter about to end.
At her first post-FOMC meeting press conference, Janet Yellen suggested that Fed tightening might come as soon as six months after the end of Quantitative Easing, which on its current pace would be in the fourth quarter. Six months later would be roughly around the middle of 2015. Markets had been expecting the first rate hike to come late in 2015. The possibility of higher rates sooner – and it is only that, based to some extent on forecasts of stronger economic growth than seen in the past 4½ years of expansion – sent bond prices lower last week. Stocks finished up for the week and within 1%-2% of their highs. Follow the link below to our review of last week’s market action.