The stock market received a boost on Wednesday when Federal Reserve Chairman Ben Bernanke talked about interest rates and how they will stay low. When Bernanke made his semiannual forecast report to Congress, he told them he expected rates to remain low and borrowing would continue. Investors took his words for what it was and the stock market jumped.
The Dow Jones and actual average went up by two points. J.P. Morgan Chase & Co. and Bank of America Corp. rose roughly 2% or more.
New home sales report were disappointing, though. New home sales fell to a record low in January, 11.2%. That is the lowest level on record. Even with the first-time home buyer tax credit extension, home sales may suffer over the next couple of months.
With the stock market getting a boost on Wednesday, there is new hope and fresh faces on Wall Street. Stocks may continue this trend into March. Many are hopeful borrowing will continue and house sells will rise over the coming months.