US Stock Market Overview – Stock Rise Led by Nasdaq; Big Cap Tech Continues to LeadDurable Goods Orders rise more than expected
US stocks were mixed as small-caps continued to face downward pressure as the Nasdaq and S&P 500 index hit all-time highs. Later this week Federal Reserve Chairman Jerome Powell is expected to lay out a new framework for meeting its often-elusive goal of 2% inflation. Large-cap tech shares continued to drive the markets higher this time by Facebook and Salesforce.com. Sectors in the S&P 500 index were mixed, led higher by technology and communications, real-estate and energy bucked the trend. The VIX volatility index initially moved lower but bounced into the close as investors hedged their positions, driving up implied volatility. Durable goods orders rose more than expected, initially buoying yields, and reflecting a healing US economy. Hurricane Laura was upgraded to a category 4 hurricane and is poised to hit both the Louisiana and Texas coasts. Mortgage demand to purchase existing and new homes continues to surge.
Durable Goods Orders Beat Expectations
Durable goods orders rose 11.2% in July, compared with expectations of an increase of 4.3% and a 7.6% increase in June. New orders for capital goods slowed in July, suggesting the rebound in business investment could become more gradual. Orders for non-defense capital goods excluding aircraft, a proxy for business investment, increased 1.9% last month, according to the Commerce Department. Core capital goods orders jumped 4.3% in June. Expectations were for core capital goods to climb by 1.9% in July.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Mortgage Demand Continues to Climb
Mortgage applications to buy US homes rose just 0.4% last week from the previous week but were a remarkable 33% higher than a year ago, according to the Mortgage Bankers Association. Pent-up demand from the spring market and the new stay-at-home mindset has driven the demand for home purchases to record highs.