On Tuesday, the equity markets enjoyed one of their best days of the year, with big buying in the broad market that sent the S&P 500 back above its 50-day moving average. The benchmark measure of the domestic equity market really started to take off around 11 a.m. EST.
Well, thatâ€™s when Fed Chairman Janet Yellen began answering questions about the labor market during her Congressional testimony. Comments by Yellen indicating she was â€śsurprisedâ€ť by the weakness in the December employment report, and that despite seeing some improvement in the labor market, things werenâ€™t yet back to â€śnormal,â€ť were widely read as â€śdovish.â€ť That comment means the Fed likely will keep its foot on the accelerator until the labor market improves substantively.
Read more about the Fed-charted course for continued economic recovery at Eagle Daily Investor.