A Late Surge, Big, But Not Big Enough
Late day buying almost pushed the S&P 500 into new high territory--but fell back just at the close.
Still, it was an impressive rally: we started the day with typical light summer volume; stocks were immediately under pressure from higher Treasury yields and a higher dollar.
The Dow was down over a hundred points as we entered the final hour, but then began to rally, with notable volume in the S&P ETF (SPY), indicating that traders were buying the overall market.
What happened? No specific news, though several points were noted:
1) the dollar weakened midday, closing with only modest gains;
2) Economist Paul Krugman, speaking at the London School of Economics, said he thought the recession was likely to end this summer, and that "there's some reason to think we're stabilizing."
3) Apple helped tech stocks at the same time, announcing a new iPhone, lowered prices on the current version, and an updated Macbook.
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