NEW YORK (TheStreet) -- Major U.S. stock markets opened higher on Wall Street Tuesday as investors were greeted by upbeat earnings reports and policymakers commenced with the first day of the Federal Open Market Committee meeting.
On Monday, U.S. stocks recouped losses sustained early in the day as merger news outweighed weaker-than-expected domestic housing data, and Russia was hit by sanctions from the U.S. and promises of more from the European Union in coming days.
Byron Wien, vice chairman of Blackstone Advisory Partners, writes in his monthly market commentary that the S&P 500 has risen 186% in the 61 months since the March 9, 2009, low. It's been a long time since there's been a meaningful correction -- about 700 days since a decline of 10% and almost twice as long since a drop of 20%. And this type of market action is not unprecedented, said Wien. In the 1990s the S&P 500 continued rising for 1,700 days before a 10% pullback and over 3,000 days before one of 20%. The rise prior to the 2008 decline extended for 1,100 days before a 10% correction, he noted.
"Many investors are worried about a shift in Federal Reserve policy triggering a serious correction in the market," said Wien. "Based on Chairman Yellen's comments on the economy, I do not think an increase in short-term rates is imminent... my own view is that we won't see a rise in rates until mid-2015." But if real GDP growth looks like it will exceed 3% some time in the second half, a rate hike is possible, he adds.