Last Meeting for Bernanke; Tapering Expected to Continue

Last Meeting for Bernanke; Tapering Expected to Continue Updated: 1/22/2014

Broad U.S. and Global equity markets are up slightly after reaching all-time highs intra-day last week. Next week’s Fed meeting on January 28-29 will be the last for current Fed Chairman Ben Bernanke prior to handing over the reins to Vice Chair Janet Yellen. It has been widely expected that the tapering will continue next week dropping the bond buying from the current $75B per month to $65B. In addition, rates are expected to remain low at the very least until after Ben is no longer running the Fed.

“Interest rates are expected to remain low until after Fed Chairman Ben Bernanke’s departure,” said David Krein, Managing Director of NASDAQ OMX Global Indexes. “Tapering should continue to drop to $65B per month at next week’s meeting, and we are expecting that number to progressively drop through the year after Vice Chair Janet Yellen has taken over.”

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY (NBI) has continued its transcendence in the first few weeks of 2014 on the heels of the Index’s best year in the past decade. The Index has returned 2.33% as of noon on Wednesday from the most recent Friday close.
  • PHLX OIL SERVICE SECTOR (OSX) was flat with a relative increase of 0.27%. The price of crude oil was $96.66 per barrel.
  • NASDAQ OMX CEA SMARTPHONE (QFON) is up 1.39% following the continued flurry of price-conscious moves by providers to steal customers from one another.

INDEX TO WATCH

  • Gold miners are coming back into favor in the first few weeks of 2014 after a rough 2013. Look for activity in the space by tracking the PHLX GOLD/SILVER SECTOR (XAU), which is up 11% YTD following a -48% return in 2013.

 

NASDAQ® and NASDAQ® are registered trademarks of The NASDAQ Group, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither The NASDAQ Group, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding NASDAQ-listed companies or NASDAQ proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.

© 2015. The NASDAQ Group, Inc. All Rights Reserved.

Loading...
Account Sign In