Stocks have another strong week
Stock markets recovered from last week’s losses and extended one of the strongest starts of the year in history, as major indexes are up 10-16% for the year. U.S. and overseas markets surged to the highest levels since November. Low inflation data, reduced trade fears, strong economic data, and lower interest rates encouraged investors.
The S&P 500 bull market has now entered its 10th year. The S&P 500 closed the week at 2,822.48, up 2.9% from 2,743.07 last week. It is up 12.6% year-to-date.
The Dow Jones Industrial Average closed the week at 25,848.87, up 1.6% % from 25,450.24 last week. It’s up 10.8% year-to-date.
The NASDAQ closed the week at 7,688.53, up 3.8% from 7,408.14 last week. The NASDAQ is up 15.9% year-to-date.
Treasury Bond Yields almost unchanged this week
The 10-year treasury bond yield closed the week yielding 2.59%, down from 2.62% last week. The 30-year treasury bond yield ended the week at 3.02%, almost unchanged from 3.00% last week. We watch treasury bond yields because mortgage rates follow bond yields.
Mortgage rates drop to the lowest level in one year
Stock market terms defined
- ARM – “A 5-year ARM is a loan with a fixed rate for the first five years. After that, it has an adjustable rate.” (LendingTree.com)
- Down Jones Industrial Average – “An index that tracks 30 large, publicly-owned companies trading on the New York Stock Exchange and the NASDAQ.” (Investopedia.com)
- Freddie Mac – (Federal Home Loan Mortgage Corporation or FHLMC) “A government-owned corporation that buys mortgages and packages them into mortgage-backed securities.” (TheBalance.com)
- Mortgage – “An agreement that allows you to borrow money from a bank or similar organization (such as a credit union) by offering something of value, esp. in order to buy a house or apartment” (Cambridge Dictionary)
- NASDAQ – Acronym for the National Association of Securities Dealers Automated Quotations. “A global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks” (Investopedia.com)
- S&P 500 – “The S&P 500 index is a basket of 500 of the largest U.S. stocks, weighted by market capitalization. The index is widely considered to be the best indicator of how large U.S. stocks are performing on a day-to-day basis.” (Motley Fool)
- Stock market – “The stock market is where investors buy and sell shares in public companies.” (NerdWallet.com)
- Treasury bond yield – “Treasury yields are the total amount of money you earn by owning U.S. Treasury bills, notes, or bonds. The U.S. Treasury Department sells them to pay for the U.S. debt. … Treasury yield prices are based on supply and demand.” (The Balance.com)
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