On Wednesday, US stocks dropped, ending 3 consecutive days of positive results for S&P 500.
US indices closed on Wednesday with mixed results:
- S&P 500: 3,113.49, down 0.4%
- Dow Jones industrial average: 26,119.61, down 0.7% (170 points)
- Nasdaq composite: 9,910.53, up 0.2%
As the numbers of confirmed COVID-19 cases rise, concerns for a potential second-wave lockdown in the US presents a real possibility.
Amid the predominantly negative news, the progress in the housing market shows a 4% surge in mortgage applications, and the year to year comparison indicates a 21% increase. Ian Shepherdson, chief economist at Pantheon Macroeconomics indicated that we may be seeing an increase in construction and new home sales in the coming months, which will cement an outstanding bounce-back for the sector.
“In short, the housing market is on track for the fastest and most complete recovery of any sector in the economy,” he said.
Federal Reserve Chair Jerome Powell announced Wednesday afternoon a plan to slowly shift the central bank’s corporate-credit purchases from exchange-traded funds to individual bonds.
Oil traded slightly lower on Wednesday. West Texas Intermediate crude fell as much as 3.1%, to $37.21 per barrel. Brent crude sank 2.3% to $40.03 per barrel, at intraday lows.
A Bloomberg report indicated the White House is considering a $1 trillion infrastructure initiative. A number of popular reopening stocks, including Gap, American Airlines and Carnival Cruises closed higher as investors looked forward to a full reopening.
Investor optimism remains high for the retail sector. According to the latest data, spending leaped 17.7% in May, serving as another sign of the V-shaped rebound.