The release of better than expected jobs data on Friday pushed the US stock market to its highest levels of 2009 as investors remained optimistic rather than dwelling on the economic difficulties of the past year.  In spite of news from a government report that 247,000 employees lost jobs nationwide in July, the overall number of unemployed Americans fell to 14.5 million.  The country's current unemployment rate of 9.4% (down 0.1% from a month earlier) was also welcomed news, its first month-over-month drop since April 2008 (source: Department of Labor). 
                   
The S&P 500, which had closed above 1000 on Monday for the first time since President Barack Obama's November 2008 election, finished last week at 1010.  The stock index is up +13.6% YTD (total return) but more remarkably, has gained +50.8% in just the last 5 months.  Over that 5-month period, the S&P 500 has added $3 trillion of value to the accounts of equity investors (source: BTN Research). 
 
If our recession, which began in December 2007, isn't officially over, investors are making a strong case that it may have run its course.  The Federal Reserve will hold its 5th scheduled meeting of 2009 this week and may add to the country's optimism when it releases its summary statement on Wednesday afternoon.  The Fed funds futures market is priced to reflect a 100% probability that the Fed will leave short-term interest rates unchanged at this meeting, matching its action following each of the 4 previous 2009 meetings (source: Federal Reserve).