Although the Dow soared to its biggest gain in almost two weeks, the market might be getting ahead of itself as investors eye a highly-anticipated speech by Federal Reserve chairman Ben Bernanke last this week, strategists said.
"At the end of the day though, I don’t think this is going to do a whole lot," said Larry Kantor, head of research at Barclays Capital, about possible action by the Fed . "The problem isn’t that interest rates aren’t low enough right now. There’s some structural impediments in the U.S. economy."
Kantor added that he does not expect Bernanke to announce QE3, or a third round of quantitative easing . If QE3 is announced, Kantor said it would have to be more than the $600 billion in Treasurys the Fed purchased in November. If the amount were to be the same or smaller, the easing could have a negative effect, he said.