US Stock Market Overview – Stock Rally Led by Financials as Sentiment Continue to Rise

US stock prices surged higher on Tuesday following the long holiday weekend. Stocks were buoyed by news that another company was in Phase 1 trials of a COVID vaccine. The S&P 500 index closed above the 200-day moving average, which is a positive sign for the broader index.

US housing prices continued to rise in March according to a recent report from S&P Case-Shiller. The Chicago Fed national activity index moved lower in April. All sectors in the S&P 500 index were higher, led up by Financials and Industrials, Healthcare was the worst-performing sector in the broader index. The VIX volatility index moved lower but failed to close below the 200-day moving average which means that options traders are more cautious than stock traders. Crude oil prices moved higher on Tuesday, following another large drop in the rig count Friday. WTI closed above $34 per barrel for the first time since early March. This helped buoy energy shares.

US Housing Prices Continue to Rise

US home-price appreciation continued to rise in March. The S&P CoreLogic Case-Shiller 20-city price index posted a 3.9% year over year gain in March, up from 3.5% the previous month. On a monthly basis, the index increased by 0.5% between February and March.

Chicago Fed National Activity Index Dropped

The Chicago Fed’s national activity index came in lower dropping to negative 16.74 in April, down from a revised negative 4.97 in March. The index’s three-month moving average decreased to a negative 7.22 in April from negative 1.69 in the prior month. The contribution of production-related indicators declined to negative 5.63 to the index, down from negative 2.31 in March. Employment-related indicators contributed negative 9.06 to the index in April, down from negative 1.06 in the prior month.

For a look at all of today’s economic events, check out our economic calendar.