Yahoo Finanza US Stock Market Overview – Stock Rally Lead By Financials, Travel Shares Also Rise
US Stocks surged higher as traders rotated out of the high flying technology shares and into value share, pushing the S&P 500 index further above the 200-day moving average. The Dow Industrials was the best performing sector. All sectors in the S&P 500 index were higher, led by Financial and Cyclicals, Utilities were the worst-performing sector in an up tape. Energy shares also lagged, as oil prices eased. Additional stimulus from the European Union and the Japanese government helped buoy riskier assets. US Rates edged slightly lower, which continued to help buoy the US mortgage market. Mortgage applications continued to rise climbing 9% in the latest week. The rotation was out of some of the large-cap technology shares which took a breather as travel-related shares which have been pummeled, rebounded sharply.
More Stimulus
The EU and Japanese governments gave riskier assets a one-two punch, helping to lift global equity bourses. The European Union announced a $2 trillion coronavirus response plan, including a massive pooling of national financial resources that, would deepen the bloc’s economic union. The proposal composed of a $824 billion recovery plan and 1.4 trillion budget over the next seven years. This news followed the release of Japan’s new stimulus plan.
Japan announced a stimulus package totaling $1.1 trillion as economic woes and eroding support for Prime Minister Abe’s government, pushed the government for aggressive measures. Capital will be used to helping companies that are in trouble as well as, rent subsidies, and healthcare assistance. It will be funded by a second supplementary budget.
Mortgage Applications Rise
Mortgage applications for new homes rose 9% last week from the previous week according to the Mortgage Bankers Association’s index. It was the sixth straight week of gains and a 54% recovery since early April. The 30-year fixed-rate mortgage has dropped 75-basis points since January. Homebuyers are getting a great deal over 30-years, The gains mirror an unexpectedly strong sales pace just reported for newly built homes in April. They were forecast to fall by 22% but instead rose nearly 1% for the month.
This article was originally posted on FX Empire
