The month of October was a roller coaster ride for investors and on the last trading day of the month , two benchmark stock indexes closed at a record high on Friday.
Big moves by Japan to add vigor to its ailing economy made the Nikkei 225 to take a super sized leap of 4.8% and led to a global rally which culminated at the Wall Street with strong market gains.
The Dow Jones industrial average was up 195.10 points, 1.1% up to close at 17,390.52. It has been the highest closing since August 19 when it closed at 17,279.74. The S&P also ended in a positive note and added 23.40 points, 1.2%, to close at 2018.05 also it’s highest since August 18 when it closed at 2011.36. Nasdaq composite index also had the same story and closed at a 14 1/2-year high, gaining 64.60 points, 1.4%, to close at 4630.74. Nasdaq which is packed with tech companies shot up to a 14 year high of 4641.51 in early trading before sobering down.
The yield on the benchmark 10 year US Treasury note ended on a positive note at 2.33%, up from 2.31% Thursday. The price of crude oil continued to fall and lost another 54 cents to end at $80.58 a barrel.
Japan markets went berserk with a double dose of good news. Central Bank announced that it will start asset purchases in an effort to jettison a sagging economy and to boost inflation which is precariously low. The GPIF or the Japan’s Government Pension Investment Fund indicated that it will invest some $1.1 trillion from its coffer of 127 trillion yen in higher-risk assets, such as stocks. It was making a major change in its investment strategy and hopes that boosting its investment will rejuvenate a stagnating economy.