The Dow Jones Industrial Average Breaks 10 Day Streak of Gains
After rising for the past 10 days, the Dow ended modestly lower Friday March 15, 2013 following a surprise drop in a measure of consumer confidence.
The Dow Jones Industrial Average fell 0.3%, ending the longest winning streak since 1996. The S&P 500 fell 0.3% after coming within two points of its October 2007 record high on Thursday and the NASDAQ lost 0.3%.
All three indexes ended higher for the week, and are up between 7% and 11% for the year.
The last time the Dow had such a string of gains, then Federal Reserve chairman Alan Greenspan warned that investors were experiencing “irrational exuberance.”
The optimism we’ve seen for stocks suggests that expectations are very high and reality often doesn’t live up to that level of perfection.
Still, a correction in stock prices would be healthy, creating opportunities for new investors to push the market higher in the second half of the year.
Stocks have been supported by better-than-expected economic data and signs the Federal Reserve will keep its stimulus policies in place.