U.S. Stocks rise as support for Janet Yellen as new Fed Chairman nomination grows
November 14, 2013
Today – Thursday Novemeber 14th 2013
- Investors focused on the nomination of Janet Yellen as she was grilled by the Senate Banking Committee today. Janet Yellen supports the current Fed policy of pumping $85 Billion monthly stimulus into the economy. Investors and the stock market heavily depend on this monthly $85 Billion stimulus into the economy because investors believe it will help the current health of the economy grow.
- This $85Billion stimulus, the Fed’s bond-buying program is widely credited for helping to enable the S&P 500’s 26% gain in 2013. Which is why it’s highly favored by investors to make sure this program is continued. Thus bringing the stock market up as confidence and certainty is brought because investors believe that Janet Yellen will be the next Fed chairman and continue the $85 Billion program.
- Home builders including PulteGroup shot up, as investors bet that continued that the $85 Billion bond buying stimulus program will keep a lid on mortgage rates and encourage home sales.
- The Dow Jones Industrial Average rose 54.59 points, or 0.3%, to 15876.22, while the S&P 500 gained 8.62 points, or 0.5%, to 1790.62. Both indexes ended at record levels for a second consecutive day. The Nasdaq Composite Index added 7.16 points, or 0.2%, to 3972.74, its highest finish in more than 13 years.