S&P 500
THE GIST (The “What”):
THE GIST (The “What”):
Pushing global political and trade war concerns aside for now, the index rebounded as global equity markets stabilized after Tuesday’s sell-off as investors flocked to safe haven assets following Italy’s political chaos during the U.S. Memorial weekend. Opening with gains and moving convincingly above the 100 DMA (now at 2710.63), the index maintained a steady momentum and closed near session highs at 2724.01, gaining 1.27% (up 34.15 points). All 11 primary sectors closed the session with gains led by the Energy sector.
S&P 500 OUTLOOK for THU 05/31
THE DETAILS (The “How & Why”):
Financial stocks bounced back strongly in today’s session, gaining 1.94% after facing the brunt of nervous investors in Tuesday’s session fearing a European debt crisis that could be followed by a global slow down. The 10-year Treasury yields inched up 9 basis points, settling at 2.849%, albeit staying bel
ow the psychologically important 3% mark as anxiety surrounding Italy’s political drama subsided.
ow the psychologically important 3% mark as anxiety surrounding Italy’s political drama subsided.
Leading the index, Energy stocks gained a solid 3.11% as oil prices soared for the first time in six sessions following reports that the OPEC will be maintaining their existing production curbs until the end of this year. Health care, Consumer staples and Industrials were also amongst the best performing sectors in today’s broad based relief rally. Real Estate stocks extended Tuesday’s gains, rising 1.37%.
The Wall Street’s ‘fear index’, CBOE Volatility Index (VIX) fell back to 14.94 after rising dramatically to 17.02 in Tuesday’s session, registering the largest one-day gain since February 5.
On the economic data front, the economy grew at a softer-than-expected annual rate of 2.2% in the first quarter, as against an estimated 2.3%. The Personal Consumption Expenditure index, a measure of inflation rose 1.6% over the first quarter last year indicating that the Federal Reserve will remain firm on its track to raise interest rates next month, aiming for a 2% inflation rate.