By Evelina M. Tainer, Chief Economist, Econoday
August 2, 2002

Market sentiment appeared to shift slightly as stocks began to rally in the past few trading sessions. Not all market indexes moved up on the same day or by the same magnitude but the movements were starting to look less frightening. Market players decided to monitor economic reports once again, and wouldn't you know, these were sufficiently weak to lead stock prices lower and bond prices higher. The economy is still growing, but at a snail's pace, causing some investors and economists to consider the possibility that the Fed might ease monetary policy this year.