Market Wrap

The market really loves Bernanke. It seems like whenever he speaks, the financials markets key into the sense of calm he provides, and respond positively. Both the stock and bond market rallied strongly today.

Bond yields fell 8 basis points to 4.73%, as measured by the 10-year T-note. And Bernanke said that he doesn't believe the inverted yield curve is foreshadowing economic weakness ahead.

In the stock market, the Dow utilities, transports, and industrials all hit new highs today. This is the first time that the trio has made simultaneous new highs since 1998. Not bad.

Tech stocks led the way, with the semis up +2.1%, followed by brokers (+2.0%), and industrials (+1.5%). Nearly all sectors were higher, save for the REITs, which were down on the day.

Large-caps really led the way, with the Russell 1000G +0.9%, while the Russell 2000 was up only +0.2%. For its part, the Nasdaq 100 was up +1.75%, and is leading the major indexes YTD.

Go back and read my sentiment post from today. I dont' think we will have that 2% correction people keep talking about until more investors embrace this rally.