Dow Soars 619 Points
PUBLISHED ON: Aug 26, 2015
In trading today, the market made a big push toward coming back from a terrible week. The Dow gained 619.07 points and closed the trading day at 16,285.51. The NASDAQ led the day in gains, adding 4.24%, or 191.05 points, to close out the day at 4,697.54. The S&P 500 split the difference and gained 72.90 points to close the day at 1,940.51.
In overseas trading, it was a very different story. Although Japanese markets were solidly up, China and Europe had a very hard day. Markets in Hong Kong fell by 325 points, while London dropped 100.
Markets Fight Back on Huge VolumeToday was a record-breaking day for both the Dow and S&P 500. It was the biggest day for real gains since 2004, and the third-largest point advance in the history of the Dow. Volume played a huge part of today's rally. It was almost 200% of normal. Investors were snapping up deals that the week's volatility had left sitting below value.
NY Fed Says September Hike 'Less Compelling'The Fed meets tomorrow in order to discuss whether or not the time is right to raise the prime interest rate. The prime controls how much banks pay to borrow from the Fed, and can impact everything from mortgage rates to whether or not you get approval for a loan. The head of the New York Fed said today that he was going into the meeting with the feeling that a rate hike might be "less compelling" now, after the terrible week we've had in the markets.
The Fed is still widely expected to raise rates before the end of the year, although it's beginning to run out of time. With only one more meeting after this one, the Fed may well act soon to raise the prime rate. Some analysts, including myself, think that the Fed likely missed the perfect window for a rate raise after the last meeting. That doesn't necessarily mean that they're not going to act, though.