The Stock Market

May 2, 1997 • Volume 7, Issue 17
How high is too high?
By Kenneth Jost


The trading floor at the New York Stock Exchange  (Photo Credit: NYSE)
The trading floor at the New York Stock Exchange  (Photo Credit: NYSE)

The U.S.stock market has climbed to record heights in the 1990s, driven by a prolonged economic expansion and explosive growth in mutual funds. The growing number of investors — more than 40 percent of U.S. households — are delighted. But the Federal Reserve Board is worried that stock prices have gone too high. Fed Chairman Alan Greenspan warned in December of “irrational exuberance” in the market, and the Federal Reserve raised interest rates in late March to try to cool the economy and ward off inflation. The move caused the markets to slide, but blue-chip stocks began climbing again in April. Now the markets are waiting to see whether the Fed will raise interest rates again.

ISSUE TRACKER for Related Reports
Stock Market
Aug. 29, 2008  Socially Responsible Investing
Jan. 16, 2004  Stock Market Troubles
May 02, 1997  The Stock Market
May 20, 1994  Mutual Funds
Dec. 18, 1987  Spotlight on Wall Street
Aug. 08, 1986  Global Stock Market
Oct. 08, 1969  Wall Street: 40 Years After the Crash
Jul. 26, 1967  Mutual Funds in the Market
Dec. 24, 1934  Corporate Publicity For Protection Of Investors
Feb. 01, 1930  Stock Exchanges and Security Speculation
Jan. 01, 1925  The Stock Market Boom and Public Investment
Financial Institutions
Investment and the Stock Market