The Stock Market “Takes Off”
As an update to my story earlier this week, investors got the news they were looking for. And it’s what I was expecting to see as I pointed out in the “heads up” story previously.
Stocks are continuing higher, on track for a strong weekly advance. Investors have embraced yesterday’s announcement from the Federal Reserve of new steps to boost the economy and to bring the unemployment rate down.
The Fed pledged to spend $40 billion on mortgage bonds to drive down long-term interest rates and push investors into stocks. It also extended a promise of low interest rates by six months, into 2015.
Today’s gains come a day after the Dow rose more than 200 points, closing at a four-year high. For the week, the key averages were up 0.6 to 1.8 percent before today’s opening bell.
Meanwhile, another area to watch is the price of oil. It rose above $100 for the first time since May before dipping back below. It was up $1.35 for the day at $99.65. Unrest in the Middle East this week has heightened concerns about world oil supply.