Markets
For the week of Monday, November 2, 2012 through Friday, November 9, 2012:
- Standard & Poor’s 500 Index: -2.43%
- Dow Jones Industrial Average: -2.12%
- NASDAQ Composite: -2.59%
On Monday, stocks rose on the eve of the U.S. presidential election, rebounding from Friday’s selloff that had capped the Dow industrials’ second straight weekly loss. On Tuesday, investors pulled the “buy” lever as Americans headed into voting booths to determine who will lead the nation for the next four years.
However, Wednesday turned out to be a bad day for investors, as the market was betting on a Mitt Romney win. The Dow Jones Industrial Average dropped 2.4%, to 12932.73, handing the blue-chip average its biggest one-day fall since Nov. 9, 2011. This sent the Dow to its lowest level since August. Additionally, the Standard & Poor’s 500 Index dropped under the psychologically significant 1,400 level. The S&P 500 index lost 2.4%, closing at 1,394.53.
On Thursday, investors’ worries about U.S. politicians’ ability to strike a budget deal offset firm labor-market and export data. Major stock market indices finished Friday’s choppy session mostly higher, because a better-than-expected reading on consumer sentiment helped offset worries about the fiscal cliff issue.
Interest Rates
- Treasuries rose in the latest week as investors flocked to U.S. safe havens following the election
- The two-year Treasury rate fell two basis points to 0.26%.
- The five-year Treasury rate fell eight basis points to 0.66% and remains well below its six-month high of 0.82% hit in October.
- The 10-year Treasury rate fell six basis points to 1.67%—just above its six-month average of 1.66%.
- The 30-year Treasury yield fell seven basis points to yield 2.83%, falling further below its one-year average of 2.94%.