Best day of 2012 for Dow industrials and S&P 500 … U.S. stocks surged Wednesday, with the Dow industrials and S&P 500 both tallying their best day this year, on increasing optimism that central bankers would move to bolster the economy. “It appears the market is under the belief that Uncle Ben and his band of merry makers are going to be coming to the rescue,” Bob Pavlik, chief market strategist at Banyan Partners, said of Federal Reserve Chairman Ben Bernanke and other Federal Open Market Committee members. The Dow Jones Industrial Average DJIA +1.05% climbed 286.84 points, or 2.4%, to 12,414.79. The S&P 500 Index SPX +0.99% advanced 29.63 points, or 2.3%, to 1,315.13. The Nasdaq Composite COMP +0.82% added 66.61 points, or 2.4%, to 2,844.72. – MarketWatch
Dominant Social Theme: Happy Days Are Here Again.
Free-Market Analysis: Or are they? Europe is failing, China just cut interest rates and US markets moved up hard on a hope and a prayer.
The hopeful prayer was that Ben Bernanke would cut interest rates – or that he intends to. Why this would cause the Dow to climb some 300 points is mostly a commentary on what markets, US markets especially, have become in the 21st century.
full article at source: http://www.thedailybell.com/3971/The-Madness-of-Market-Euphoria