Ben Bernanke Comments Push Stock Market Lower by Over 1% – Mortgage Rates Tank with 10 Year Treasury Yield
Posted on | July 21, 2010 | No Comments
Around 2:00 Ben Bernanke made the statement that the economic outlook remains “unusually uncertain” which spooked the market and sent the major indices down over one full percentage point. Along with the stock market drop we saw the 10 year treasury rate yield tank as well which is sure to push mortgage interest rates lower.
When all was said and done the Dow Jones Industrial Average was down slightly over 1%, the S&P 500 was down around 1.25% and the NASDAQ was down over 1.5%. When looking at a chart of today’s action it is crystal clear when Bernanke started his speech in front of Congress.
During this testimony Bernanke continued to explain that the Federal Reserve Bank is going to keep interest rates low for an extended period of time. Each time Bernanke makes this comment, which has been quite often lately, we have seen 10 year yields sink which in turn has pushed 30 year fixed mortgage rates down as well.
With the market digesting the news from the Fed chairman many investors are showing that they do not like the world “uncertain.” If the Chairman of the Federal Reserve Bank is uncertain then it is quite evident that the average investor is uncertain as well.
Author: Jesse Wojdylo
Ask Wojdylo Column – Financial, Entertainment and Sports news with a money spin.
Tags: Ben Bernanke > ben bernanke comments > bernanke interest rates > bernanke mortgage rates > bernanke stock market > mortgage interest rates > stock market > stock market lower
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