This one isn’t particularly hard to figure out. Risk appetites run rampant, US dollar gets pummeled.
And as long as there’s not even a casual effort to buoy the buck, carry traders are happy to sell it and plow more dough into stocks, gold and oil — and maybe even Treasurys now (yes, they were up too today.)
Where’s the risk in that? Doesn’t look like there is any, for now. Not unless there’s a sudden rush to seek shelter in the “safe-haven” USD. That might come under the header of “geopolitical risk,” but there hasn’t been a whiff of that priced into stocks since oil tumbled off it’s pedestal more than a year ago.
Financials, materials, industrials, telecom and consumer discretionary lead the rally. IBM, CAT, AmEx and UTX among the Dow’s leading dollar advancers.
You know there’s a certain throwing of caution to the wind when the consumer discretionary sector rises 2.2% one session removed from seeing unemployment hit a 26-year high, and no sign it’s going back down any time soon.
DJIA rises 203.52 (or 2%) to 10226.94, and Nasdaq Comp gains 41.62 to 2154.06. S&P 500 adds 23.77 to 1093.07.
Apologies for the light posting today, should be back with more frequent items tomorrow.