US stocks increased Tuesday with the Dow reaching another record high. This came after Wall Street’s first three day losing streak of 2013. The gains in US stocks were attributed to the assurance made by central banks that they would keep policies designed to bolster global growth.

Consumer confidence reached its strongest level in May in over five years. Home prices went up in March by the most in almost seven years. Reports indicated that the US economy remained resilient despite the cost cutting due to the automatic cuts in federal budget.

Equity investors have been attuned to monetary policy as the major US stock indexes got their first negative week last week. Investors were concerned that the Federal Reserve would reduce its stimulus program sooner than expected.

The concerns regards the stimulus measures were eased after the Bank of Japan as well as the European Central Bank maintained that their accommodative policies would remain in place. This helped indexes recover from the decline last week.

US markets were closed Monday due to the celebration of Memorial Day. ECB Executive Board member Joerg Asmussen said that the policy would remain as long as it is needed. BOJ board member Ryuzo Miyao said that it was important to keep short and long term interest rates stable.

Even with the assurance made by the Central Banks, speculations remained regarding the tapering of the Fed’s own stimulus program in the near future. The US Treasury debt yields increased to their highest levels in over a year. It pulled equities back from their session highs.

The Fed’s monetary stimulus led to the gains in Wall Street this year. The S&P 500 is up around 17 percent for the year. Analysts said that earnings growth and relatively cheap valuations are reasons that investors have used as a buying opportunity.

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