A LACK OF BAD NEWS
Some days, it would seem that a lack of bad news can be just as effective as a day with good news in the financial markets. Stocks and indexes rallied Monday the 11th after hurricane Irma caused less damage than expected, calming fears of its impact on economic growth. Optimism also increased after North Korea failed to announce another missile test over the weekend. Many indexes reached near record highs, with the Dow closing at 22,057.37 after rising 1.19% throughout the day.
Above: The Dow Jones Industrial Average index neared record heights on Monday. (Google Finance)
Other indexes including the S&P 500, Nasdaq Composite, and TSX were also up for the day. The banking and technology sectors saw gains throughout the day, with Goldman Sachs rising 1.8% and Apple rising 2 percent, reflecting the anticipation of the release of the IPhone 8 on Tuesday. Gold on the other hand fell $12 on Monday, after reaching its highest point in over a year on Friday. Analysts say this decrease is due to “a weaker [US] dollar and lower expectations of tighter policy by the Federal Reserve.”
The Chicago Board Options Exchange (CBOE) fear gauge, which is known by the ticker VIX, measures the implied volatility of S&P 500 index options. It experienced its biggest decline in three weeks thanks to the gains in the technology and banking sectors.