More and more Fed watchers are calling for a more aggressive approach. It would seem that we now have a two-tiered market dubbed 'new' economy and 'old' economy. Whereas the old economy would be affected by higher interest rates it doesn't seem that the new economy cares. Most new economy companies carry little debt nor do they intend on borrowing large sums in the immediate future. Maybe the past week or so has changed this perception.
First confidence has to be restored in the 'new' economy stocks.
It's just never happened this quickly. This time it appears that things are a tad different. For the first time nearly everyone is actually talking about stock prices reflecting some kind of profitability or at least the possibility of near term profitability. Our economy is no different today than it was before 31 March. The climate that provided the blazing stock market is still in place.