Today’s Market Wrap Up and a Glimpse Into Wednesday

Stocks continued their momentum today as investors stopped worrying about inflation and inevitable interest rate hikes, underpinning the idea that the gains are sustainable. The S&P 500 moved higher for the second straight day but failed to end in all-time high territory. The major indices are holding their ground in extended-hours trading.

The Nasdaq managed a new record fueled by tech leaders including FANG stocks Facebook, Amazon, Netflix and Google parent Alphabet. E-commerce giant Amazon even came within a stone’s throw of a new all-time high on Prime Day.

If Amazon is any indication, the economy is back in full swing. The company’s Prime Day sales are on track to exceed USD 5.6 billion on the first of a two-day event, which would be a new record for e-commerce sales in a 24-hour stretch, as per Adobe Analytics.

The Dow Jones Industrial Average also joined the party, tacking on more than 68 points. Apple, Home Depot and Nike all gained more than 1%.

Meme Stock Update

Meme stocks GameStop and Clover Health were each up by a double-digit percentage today. GameStop’s 10% gains came after the company capitalized on the stock’s recent bull run and unloaded 5 million shares for USD 1.1 billion in an equity offering. Proceeds will be directed toward:

• Expansion
• Strengthening the balance sheet

Clover Health’s 12% rally came on the heels of the company’s management saying in an SEC filing today that the short squeeze was responsible for volatility in the stock. This nod from the company emboldened the Reddit investor crowd.

Housing Prices at Record Levels

One of the key themes in today’s trading was housing data. Median existing home prices soared to a new all-time high last month, surpassing USD 350K, according to the National Association of Realtors (NAR). Prices jumped 24% vs. year-ago levels, a feat that hasn’t been recorded by the NAR in more than two decades.

Housing prices have been inching higher in step with the reopening of the economy in a post-pandemic world. Meanwhile, existing home sales declined 0.9% in May amid a supply shortage.

Look Ahead

Several Fed policymakers will be making the rounds on Wednesday, including:

• Fed Governor Michelle Bowman, who will discuss the economy at 9 a.m. EST.
• Atlanta Fed President Raphael Bostic will make remarks at 11 a.m. EST.
• Boston Fed President Eric Rosengren rounds out the day’s panel at 4:30 p.m. EST.