Dow Rises on 'Bernanke-nomics', Rate Confidence
The Dow lifted Thursday, after Federal Reserve Chairman Ben Bernanke soothed concerns about the subprime lending market. Elizabeth Miller, managing director at Trevor, Stewart, Burton & Jacobsen, joined “Power Lunch" to offer insights on the market reaction.
In a speech to the Chicago Federal Reserve, Bernanke said rising mortgage defaults wouldn’t spread into other sectors and seriously harm the U.S. economy.
Bernanke’s outlook on the economy eased fears of a possible rate hike in the coming months, Miller said. Upbeat corporate earnings are also pushing stocks higher, she said, and global market liquidity is fueling hedge funds, private equity and other investments: “There’s no question that that liquidity is pushing our stock market higher."