U.S. Stocks Jump in Response to Stimulus

Guest Posting by Bobby Quill

U.S. Stocks Jump in Response to Possible Economic Stimulus

News in early July of hope for further economic stimulus from the Federal Reserve was enough to impact currency trading strategies and raise U.S. stocks. The Wall Street Journal reported on July 13 that the Dow Jones Industrial Average jumped 152 points, or 1.2 percent, to 12598 in midday trading, while the Standard & Poor’s 500-stock index surged 17 points, or 1.3 percent, to 1330. The Nasdaq Composite climbed 41 points to 2823.

Investors pay attention to such forex tips when there is news of possible government intervention in the currency markets. The Wall Street Journal reported that China’s Shanghai Composite jumped 1.5 percent in response to news that the country’s economy grew 9.5 percent in the second quarter, a leap that surpassed expectations.

However, many people who participate in forex trade understand that slowing inflation would give the Fed more flexibility to keep low rates for now. According to the article Mr. Bernanke spoke of the potential of a deflationary threat. Data on consumer and producer prices to be released this week are also projected to reveal a monthly decline in overall inflation.