‘93/’94 Year-End Review and Outlook : Stocks’ Slow Grind to New Highs
For Wall Street in 1993, lower interest rates here and abroad and a slowly strengthening U.S. economy were enough to overcome tax-hike worries and Russia’s festering crisis. The Dow Jones industrials gained 13.7% for the year. But a slow upward creep in interest rates toward year’s end revived worries about the aging bull market’s 1994 prospects.
Start of Year: Dow at 3,301.11; Nasdaq index at 676.95; 30-year T-bond yield at 7.39%.
Jan.: German, Japanese rate cuts fuel economic optimism.
Feb.: Market plunges on news of Clinton tax hike plan.
Mar.: Another German rate cut boosts stocks, bonds.
Mar.: Philip Morris slashes cigarette prices; brand name stocks dive.
Apr.: T-bond yield hits 20-year low of 6.71%.
May: Clinton’s popularity falls, jeopardizing tax hike plan.
Jul.: Congress passes Clinton tax plan, deficit cuts.
Aug.: European currency crisis sparks rate cuts; T-bond drops to6.08%.
Sep.: Earnings worries, Russian problems hit market.
Oct.: Nasdaq index peaks at 787.42.
Oct.: Economic strength drives up industrial stocks.
Nov.: Dow hits new high, but broad market is weak.
End of Year: Dow at 3,754.09, Nasdaq index at 776.80; 30-year T-bond yield at 6.36%.
Source: Los Angele Times
