Bernanke Comments Boost U.S. Markets

The major U.S. indices have rallied on Fed Chief Ben Bernanke's optimistic comments about the potential for near-term future rate cuts. Specifically, Bernanke claimed the Fed is "prepared to act in a decisive and timely manner" and recognized that the December job's data was quite disappointing.

Just after the announcement was released, the Dow Jones and Nasdaq indices surged, but have now pulled off their respective highs. The Dow moved as high as 12,869, while the Nasdaq jumped to as high as 2,495.

These comments are extremely positive for financial companies such as Citigroup (NYSE: C), Merrill Lynch (NYSE: MER), Lehman Brothers (NYSE: LEH) and embattled mortgage company, Countrywide Financial (NYSE: CFC). The Bernanke speech certainly hinted at possible very near-term rate cuts, which could relieve credit concerns swirling around these financials.

Shares of Countrywide continue to rise, despite the broader market's pulling back, and are still up about 7%. Other financials, such as Merrill and Citigroup, initially jumped as the Dow surged, but have since moved down, and are now trading relatively flat.

CNBC just reported that Bernanke will host a Q&A at 1 p.m. in order to address several of the issues discussed in his speech.

Here is a summary of the main points within Bernanke's speech.
Here is the full text of Bernanke's speech.

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