Why The Markets Are Rallying?

20 Jun

Wall street sign

Recent trading sessions highlight what a drag worries especially in Europe have had on stock markets. It seems that every time “apocalypse euro” news hits a pause, stocks soar. Investors are being treated to better general data than feared, but the real enthusiasm is expected to be coming from a two-day Federal Reserve meeting that began yesterday.


Chart forVOLATILITY S&P 500 (^VIX)


The market is seeking new stimulus from Bernanke & the Federal Reserve, so while the VIX (NYSE: ^VIX  ) is dropped highlighting a reduction in what may call the fear index, expect volatility to return once the meeting concludes later today. Meanwhile financials like Bank of America are soaring on the potential extension of Operation Twist.

The major indexes are all turning in strong gains.

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