Stocks continued their unbelievable rally on Tuesday, backed by some great news on the housing market! The Dow Jones Industrial Average finished higher 178.73 points (2.48%), the S&P 500 increased 24.23 points (3.21%), and the NASDAQ jumped 58.09 points (4.14%)!
The government reported today that home construction picked up in February, and the market responded very favorably to the unexpected news. Investors saw this news as another piece of evidence that the economy has bottomed and is starting to turn around. With Citigroup (C) and Bank of America (BAC) both reporting recently that they were profitable in the first two months of the year, people began to sense a turnaround in the economy. Now it seems like good news, like this most recent housing report, comes out every day to give the markets even more momentum to the upside.
The tone in the markets is almost unrecognizable, as people have moved from a state of never-ending gloom to a state of hope that this rally has the potential to be sustainable. Whether or not this rally will be sustainable and we truly have moved up from the bottom is still yet to be seen, but the fact that this rally has been backed by upbeat economic news makes it seem much more realistic than the 20% rally that occurred from November 21st to the end of 2008.
Until tomorrow,
Niki Pezeshki
College Trillionaire
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