US Stock Markets Oversold, Up Strong Again Monday
$DIA, $SPY, $QQQ, $VXX
Technology and Financial issues led Wall Street’s Key indexes higher for a 2nd strong session running Monday, with steady bond yields and volatility also helping the stock market bounce back from its worst proformance in 2 years.
Helping the market were gains of 1.5% in both the S&P materials and industrials sectors after President Donald Trump unveiled his second budget.
The proposal for FY 2019 includes $200-B for infrastructure spending, more than $23-B for border security and immigration enforcement, as well as $716-B for military programs, including the US nuclear arsenal.
10 of the 11 major S&P sectors were higher, with only the interest-rate sensitive real estate index in the Red.
This market was oversold, too fast and therefore we are seeing this strong bounce.
The news about President Trump’s budget, fiscal stimulus and infrastructure plan that is adding fuel to the positive sentiment. People are very positive about it.
Strong US jobs and wages growth data on 2 February raised the specter of rising inflation and fears of accelerated interest rate hikes, which ignited a rally in bond yields and a sell-off in stocks.
Monday’s gainers and a roughly 1.5% move last Friday, still have the DJIA and the S&P 500 off about 6% lower since their close on 1 February.
Monday, the major US stock market indexes finished at: DJIA +410.37 at 24601.27, NAS Comp +107.47 at 6981.96, S&P 500 +36.45 at 2656.00
Volume: Trade on the NYSE came in at: 1.03-B/shares exchanged
Advancing issues outnumbered decliners on the NYSE by 2,031 to 849, the NAS Comp, 1,974 issues rose and 927 fell.
- NAS Comp +1.1% YTD
- DJIA -0.5% YTD
- S&P 500: -0.7% YTD
- Russell 2000: -2.9% YTD
Overall, HeffX-LTN’s Technical outlook is Neutral in here.