US Stock Market Overview – Stock Rally Ahead of Key Earnings; S&P Closes at Record

Stocks break out and set all time highs
David Becker
Wall street, New York, USA.

US Stocks prices surged to record highs, driven by positive sentiment. It appears that a trade deal between the US and China are now being priced into US equities. Fitbit shares surged 35% following news that Google’s parent Alphabet was in talks with the company to buy it outright. Brexit remains in the headlines and it appears that the EU will provide the UK with a 3-month extension to come back to the Brexit table.  Most sectors were higher, led by Technology, Utilities bucked the trend. The VIX volatility index rebounded slightly after closing lower on Friday. This comes despite stock prices hitting all-time highs.  The VIX measures the “at the money” strike prices of the S&P 500 index and generally reflects the demand for hedging against adverse market conditions. At 12.90 the VIX is closer to the lows for 2019 near 11, compared to the highs for the year near 36.20.

Mortgage Refinances Surged in the Q3

While US rates have rebounded during the fall, the decline in rates over the summer spurred a surge in lending in the mortgage market. According to a report from the Wall Street Journal, lenders extended $700 billion of home loans in the Q3 the most in 14 years. Mortgage originations for the full year are on pace to hit their highest level since 2006 according to the WSJ.

Refinancing activity jumped 75% from a year earlier in July and August, the WSJ states. A record 11.7 million people would have saved at least 0.75 percentage point on their mortgage rate by refinancing in early September, the journal revealed.

The UK will Get a 3-month Extension for Brexit

The UK will receive a 3-month extension to return to the Brexit table. This comes on the heel of UK Prime Minister Boris Johnson’s request. France wanted a shorter time frame wishing to grant a one-month extension only.  The EU is expected to inform the UK about its decision on Tuesday.   The EC had previously rejected the re-opening the agreement. China is experiencing a protracted downturn. Chinese profits in the Industrial sectors dropped by the largest amount in 4-years. This is mainly driven by US tariffs. Profits at China’s industrial sectored declined by slightly more than 5%.  It was the biggest decline since August 2015.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.