Politics & MoneyInvestments

Stocks, bonds rally as Summers exits Fed Chair race

The market didn’t miss a beat Monday, with stocks and bonds rallying worldwide after Lawrence Summers exited the race to serve as the next Federal Reserve Chairman, the Wall Street Journal reported.

The publication described the euphoria felt on the trading floors:

Major European stock indexes shot higher. Germany's DAX was up 1.3% after hitting fresh record highs in intraday trading. U.S. stocks opened broadly higher. The Dow Jones Industrial Average rose 139 points, or 0.9%, to 15515 in early trade.

So why is Summers’ exit so important? The WSJ explains:

Many investors believed that Mr. Summers, a former Treasury secretary who has been one of President Barack Obama's top economic advisers, would be more aggressive in reining in the Fed's bond-purchase program. Since the financial crisis, the Fed has been buying Treasurys and other bonds with the aim of stimulating economic growth through lower long-term interest rates.

Most Popular Articles

The housing bubble boys blew it in 2020

The NAR existing home sales report released today blew out all estimates with 6,540,000 in existing home sales. This epic headline punctured any 2020 bubbles the housing bubble boys had left in their arsenal. But before we get too excited, keep in mind we are still down 0.2% year to date compared to 2019 levels. Still, this seems like a booming housing market, right?

Oct 22, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please