In the days leading up to Christmas, U.S. stocks reached record highs while trading was light. The Dow Jones surged during the start of the holiday week and the S&P 500 increased for the eighth time in nine trading sessions to another record high. Furthermore, ten-year treasury yields rose to 1.93%, 16 basis points higher than yields at the beginning of December. All this occurred while trading volume fell more than 20% below its 100-day average.
What are the reasons behind all of this? Bloomberg spoke with Delegate Director of Portfolio Management Dunkin Allison to find out.
“It’s a combination of low volume but also the fact that you’ve seen some progress with China, and it’s really causing the bulls to jump in here,” explains Allison. “We don’t see a lot of selling pressure today.”