6/30/20 Market Notes
US equities began the week on a positive note, gaining ground on strong housing data despite rising coronavirus concerns. The S&P 500 increased by 44 points (1.5%), erasing June’s earlier losses and finishing at 3,053. The Dow Jones Industrial Average gained 580 points (2.3%) to 25,596; and Nasdaq added 117 points (1.2%) to 9,874. Treasuries, the Dollar, and gold were unchanged, and WTI crude oil contracts added $1.21 finishing close to $40/barrel. A resurgence in virus cases has prompted New Jersey to halt plans for indoor dining and Governor Cuomo is considering the same for New York City. US cases rose by almost 30,000 yesterday, considerably higher than the peak levels seen in April. Hospitalizations continue to grow in Florida; and have reached critical levels in Houston and other areas of Texas. Fatality rates have yet to follow increasing case counts, signaling that more vulnerable populations may be taking precautions to avoid exposure. Increasing deaths could trigger a slower reopening and lead to further market volatility. On a more positive note, Pending Home Sales data was surprisingly strong in May, rising 44% against expectations of a 19% increase. That release helped to turn investor sentiment yesterday and equity markets continue to discount a strong economic recovery. Equity futures are soft on virus concerns and increasing tension with China that prompted US sanctions on technology exports to Hong Kong. Fed Chair Jerome Powell renewed calls for further stimulus in prepared notes ahead of his testimony with Treasury Secretary Mnuchin before the House Financial Services Committee later this morning.
Disclosures: This market commentary is written by the 1879 Advisors® and represents the views of 1879 Advisors®. This commentary is not investment advice and should not be used as a basis to make investment decisions. Please consult with your registered investment advisor before making any investment decisions.