After delivering his anticipated speech last Wednesday, Ben Bernanke seemed to be the extra fuel that the stock market engine needed to go full blast. The Federal Reserve Chairman confirmed the central bank's support to the economy, enabling the stock market to surge further than expected.
Bernanke made is speech on Wednesday after the trading closed. He noted that the economy needed the central bank's easy-money policy in preparation "for the foreseeable future."
The Dow Jones Standard & Poor's 500 increased to record highs while the 10-year Treasury note yields declined due to increased investor activity. Effectively, stocks with low interest rates benefited the most from this trend. Homebuilder stocks, in particular, posted the biggest gains after the Bernanke speech.
The S&P 500 Index increased by 22.40 points or 1.4%, while the Dow Jones rose 169.26 points or 1.1%. The Nasdaq composite gained 57.55 points, equal to 1.4% - the highest it has reached in almost 13 years.
Futures increased as well the day after. Stocks on Thursday rocketed and stayed until the trading day closed.
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