Today feels like a correction day after we saw strong rallies in the energy markets including crude, gasoline and natural gas. It is not uncommon to see a correction on Friday when the balance of the week has seen the price discovery grind in one direction.
Tapering and tightening are not the same thing. Tightening is tantamount to stepping on the brakes, while tapering is akin to easing up on the gas pedal. Whether this analogy holds true depends on which “effect” the market is more sensitive to.
Stocks climbed, with the Standard & Poor’s 500 Index returning above its record closing level, after U.S. home sales increased and investors speculated central banks will continue to stimulate the economy.