Wall Street Posts Best Week of 2012
The Dow snapped its seven-day winning streak on Friday as traders fretted over the specter of gasoline prices cutting into consumer sentiment. However, the blue-chip average posted its best weekly rally since December 2011.
The Dow Jones Industrial Average slipped 20.1 points, or 0.15%, to 13233, the S&P 500 gained 1.6 points, or 0.11%, to 1404 and the Nasdaq Composite fell 1.1 points, or 0.04%, to 3055.
The Dow and broader S&P 500 both jumped 2.4% this week, while the Nasdaq tacked on 2.4%. Indeed, the S&P is at its highest level since May 2008. Conversely, the CBOE’s VIX, which is sometimes referred to as Wall Street’s fear gauge, ended the week at its lowest level since 2007.
The advance in equities has been swift, with the major market averages notching multi-year highs on a regular basis, which has some analysts questioning if a pullback is on the horizon.
“The rally in global stocks and the selloff in [U.S. Treasuries] suggest to some that the markets are feeling that recovery may be finally on its way,” Jose Wynne, an analyst at Barclays Capital wrote in a note to clients on Friday. “But a deeper look into global market indicators suggests that, in fact, the market is still going through a relief rally more than chasing a new trend on global growth.”
Still, it is clear that traders are feeling more open to risky assets. U.S. Treasuries, seen as one of the world’s safest asset classes, have been pummeled as investors have fled in droves to equities and other higher-paying assets. The 10-year yield, which moves in the opposite direction of the price, recently rose 0.019-percentage points to 2.299%, the fourth-straight daily advance.