Reopening Rally Sputters On 'Second Wave' Fears

June 13, 2020 | Hoya Capital

Reopening Rally Sputters On 'Second Wave' Fears Weekly Recap Jun 13 Written By U.S. equity markets retreated this week following a frenzied "reopening rally" as investor attention - and the media spotlight - returned to the coronavirus pandemic amid concerns of a "second wave." Reminiscent of the "risk-on/risk-off" trading pattern seen during the early stages of the last post-crisis recovery, trading action over the past few weeks has exhibited a clear "reopening vs. stay-at-home" paradigm.

The S&P 500 dipped by 4.7% on a volatile week that saw the large-cap index briefly climb into positive territory for the year before hitting a stretch of mid-week turbulence. After surging by 11% last week amid a historic rally, the broad-based equity REIT ETFs finished lower by 5.4% with all 18 property sectors in negative territory while Mortgage REITs retreated by 2.6%. Housing data was again the bright spot in an otherwise mediocre slate of economic data.

Mortgage applications to purchase a home rose for the eighth straight week as mortgage rates dipped to historic lows. To continue reading, click here to visit Seeking Alpha! Comments (0) Newest First Oldest First Newest First Most Liked Least Liked Add Comment --> Preview Edit --> Post Comment… Previous Previous REITs Rebound | Homebuilders Surge | Dividends In Focus Next Next REITs Rally To Salvage Rough Week