The Bank of England Just Saved the Stock Market
It has been a brutal month for the market, with the Dow Jones Industrial Average down about 7.4%, or more than 2,370 points, in September.
The main culprit has been the hawkish Federal Reserve, which not only continued to aggressively raise interest rates but also continues to forecast more big rate hikes ahead this year. The market now firmly believes a more severe recession is inevitable in 2023 once these rate hikes fully work their way through the economy.
But on Wednesday, after days of selling, the Dow suddenly ripped roughly 549 points higher. The surprising move had nothing to do with any change in policy by the Fed, but can be attributed to a big decision made by the Bank of England, which inadvertently saved the stock market.
Source Fool.com
