Marketbites: Stocks rise as Bank of England steps in
Portfolio Manager Commentary:
U.S. stocks and bonds rose Wednesday as the Bank of England announced a surprising intervention in the bond market. The Bank of England will buy government bonds in order to stabilize the spiraling debt market. This is a reversal of monetary tightening policies implemented this year by most other central banks. The move was able to stabilize the British pound. This move helped the S&P 500 rise 1.97%, the Nasdaq gain 2.05%, and the Dow to increase 1.88%.
The increase in the markets was broad, aside from a 1.3% decline from Apple. The drop can be accredited to a Bloomberg report. Bloomberg's report cited people familiar with the matter, saying the tech company is ditching plans to increase iPhone production after demand fell short of expectations.
Chart of the Day:
The chart below highlights many of the largest U.S. equity downturns over the past century. A global recession is not out of the question for the near future. With that being said, it is interesting and daunting to visualize the current state of U.S. markets compared to previous downturns in U.S. bear markets.
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