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Why the Dow Is on Fire Today

Dan Dzombak
September 16, 2013

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

Former Treasury Secretary Larry Summers dropped out of the running for chairperson of the Federal Reserve yesterday, leaving current Federal Reserve Vice Chairwoman Janet Yellen all but guaranteed to succeed Chairman Ben Bernanke. This is pushing the Dow Jones Industrial Average (INDEX: ^DJI) up, as Summers was considered more likely to draw down the Federal Reserve's asset purchases. As of 1:15 p.m. EDT the Dow is up 146 points, or 0.95%. The S&P 500 (INDEX: ^GSPC) is up 0.8%.

Larry Summers was the Treasury secretary under the Clinton administration from 1999 to 2001 and was director of the National Economic Council for the Obama administration from 2009 to 2010. Summers was President Obama's