There was a sense of anxiety concerning whether or not yesterday’s QE rally would hold, or if it was a one time buying spree. Luckily, markets were able to close out the day on a positive note, holding tight to the gains they posted yesterday. Stocks and indexes saw a welcomed rally even today, as the Fed’s most aggressive move in recent memory sparked a vote of confidence across Wall Street. Among the best performers was Apple (AAPL), who released the long-awaited iPhone 5 on Wednesday only to watch share prices close today’s session at an all time high [see also Why QE3 is Just Delaying the Inevitable].
Global Market Overview: Big Ben’s Rally Holds
Major benchmarks were able to post decent gains for the week-ending session as they set their sights on all-time highs, and erasing the notion of reaching for “pre-recession” highs. The S&P 500 (SPY) jumped by 0.44% while the Dow Jones Industrial Average (DIA) tacked on 0.35%.
Bond ETF Roundup
10-year Treasury yields shot up an impressive 6.5% during today’s session, but the rest of the bond industry could not say the same. The Barclays Aggregate Bond Fund (AGG) lost 0.41% while the SPDR Barclays Capital High Yield Bond ETF (JNK) finished the day out with a jump of 0.1%.
Commodity ETF Roundup
The announcement of more money printing and an essential dilution of the dollar saw welcomed gains through out the majority of the commodity world, as many feel that QE 3 could lead to some hefty inflation that would benefit these hard assets. Cotton and Copper were among the top gainers with each jumping by more than 3%.
ETF Chart Of The Day #1: GDX
This fund saw a stellar jump on the day as gold mining companies were able to gain a fair amount of QE-guided momentum. Gold itself finished out the day relatively flat, but yesterday’s massive rally certainly paved the way for gold equities to make gains today. The fund rallied at the open and held on from there to jump 2.5% for the session [see also 3 Countries With The Largest Gold Reserves].
ETF Chart Of The Day #2: VXX
In a rather surprising result, VXX was also a stellar performer today. The fund jumped 3.5% for the session as the VIX was able to make steady gains. Typically when markets perform well the VIX bottoms out and vice versa, but that was not the case today. VXX dropped at open, but worked its way higher to post a solid Friday.
ETF Fun Fact Of The Day
The ETF with the largest allocation to International Business Machines (IBM) is the Dow Jones Industrial Average ETF (DIA) which invests 11.5% of its assets in the stock.
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Disclosure: No positions at time of writing.