Today was a very good day for the overall Stock Market. Stock prices rallied all day staying in the green zone from the start. The Dow Jones, Nasdaq Composite, and the S&P 500 saw huge gains in their stocks, hopefully signaling a positive and brighter future.

Dow Jones Rallying Graph

Dow Jones Graph August 23,2011 - Yahoo! Finance

The Dow Jones Industrial Average gained more than 322 points, finishing at over 11,176 points. It saw an almost 3% gain and for the Dow, 3% gain is huge. The market day actually ended with the Dow Jones finishing at it’s day’s high.

The NASDAQ Composite gained more than 4.25% and finished at 2,446 points. Just like the Dow Jones, Nasdaq finished at its highest point of the day. The S&P 500 gained almost 3.5% finishing at 1,162 points for the day. And again, the S&P 500 finishes at its highest point of the day.

Stocks have gone up for the second day in a row, and it’s giving investors hope that what we’ve gone through over the past few weeks of constant losses is over.

So what caused the stocks to rally so much today and should we worry?

The Federal Reserve Chairman Ben Bernanke is supposed to make an announcement later this week. Most investors are hopeful that it will be good news which will result in the stock market rallying even more in the near future. He may announce a new plan to help the struggling US Economy come out of the turmoil we have been seeing over the past few weeks.

We are all hoping that the news is good, but no one is really sure what he will say. Almost everything is a speculation and so far it’s working out great for investors and the stock market. We may see a similar updraft for the next few days until the announcement by Bernanke. Assuming the news is good, the stock market should see an even more increase over the few days following the announcement. We may actually have a chance to reach the 12,000 mark at the Dow Jones soon.

The market was lowering right after the earthquake hit earlier today at around 1:55PM EST. It’s epicenter was around Virginia but it was felt all over the East Coast, including here in New York City. I was actually getting part of this post ready when the earthquake started to shake my room. Before the earthquake, I was seeing the Dow Jones slowly go up over the 200 point mark. After the earthquake, it tumbled just below an overall increase of 150. But I’m glad the quake didn’t affect the market in a negative way. I’m also glad that the stock market rallied and the Dow Jones went over an increase of 300 points despite the different fears that may have gone through the minds of the general public.

What was negatively affected today, was the price of Gold. It wasn’t because of the earthquake, but because the economy was looking better today. The price of Gold actually surpassed the $1,900 mark earlier today, setting yet another record. But the price of gold didn’t stay up there. Today it took a tumble and fell away from its record of $1,909. The price of gold went down more than 62 points, finishing just under $1,826 an ounce.

If the stock market keeps going up over the next few days, I believe that we will continue to see the price of gold drop which could be a sign that the gold bubble is slowly bursting. On the other hand, since the price of gold has dropped more than 3% today, investors of Gold may actually see this as an opportunity to invest more in gold due to the slight discount they’ll be getting compared to the price it was over the past few market days.

Whatever happens with the stock market, gold will still remain very expensive. It’s still over $400 more than what it was when the year started.

Yesterday I mentioned a stock called Universal Display Corporation (PANL) and I pointed out it’s huge gain. Today, it saw another huge gain and rose almost 17%. It’s past the $40 mark and closing in on it’s 52 week high of over $63. Rentrak Corporation (RENT) also rallied today by showing a gain of almost 24% increasing the gap between it’s current stock price and its 52 week low. A stock from the technology sector called GT Advanced Technology (GTAT) Inc also saw a huge gain of more than 13.5% finishing at $11.46 today.

The three above companies are just a few examples of why the stock market is doing so well. Huge increases in stocks like these have been having a big impact on how the stock market has been doing over the past few days. I don’t own any shares in any of the companies mentioned but I do hope that it keeps up because I always like seeing companies do well whether I’m making any money or not.

Well, today was a great day for the stock market. All sectors have seen gains and the overall market closed with a big win today. Let’s hope that the gains continue over to the next few days and let’s hope that the coming announcement is a great one because we really need a break when it comes to our economy.

Nazmus

Loves creating websites and helping others. Some websites include, EasyProgramming.net, Nazmus.com, and Gamers-Forum.com.

More Posts - Website

Follow Me:
TwitterYouTube