Stimulus Whipsaw | Tech Rebound | Housing Stays Hot

October 7, 2020 | Hoya Capital

Stimulus Whipsaw | Tech Rebound | Housing Stays Hot Daily Recap Oct 7 Written By Daily Recap U.S. equity markets rebounded Wednesday after President Trump resumed calls for additional stimulus measures segmented into standalone bills, one day after halting negotiations with House Democrats on a larger stimulus package. After declining by 1.4% yesterday, the S&P 500 finished higher by 1.7% today while the tech-heavy Nasdaq 100 gained 1.9% and the Dow Jones Industrial Average rallied 531-points.

Following declines of 0.7% yesterday, the broad-based Equity REIT ETF (VNQ) finished higher by 0.2% today with 10 of 18 property sectors in positive territory. Single-family rental operator Invitation Homes (INVH) announced that it is teaming-up with Rockpoint Group in a joint venture partnership to deploy over $1B to acquire and renovate single-family homes in the Western and Southeast US. Mortgage applications to purchase a single-family home remained strong last week and are now higher by 21% from last year as the housing industry continues to lead the post-pandemic recovery.

Real Estate Daily Recap U.S. equity markets rebounded Wednesday after President Trump resumed calls for additional stimulus measures segmented into standalone bills, one day after halting negotiations with House Democrats on a larger $2 trillion package. After declining by 1.4% yesterday, the S&P 500 ETF ( SPY ) finished higher by 1.7% today while the tech-heavy Nasdaq 100 ( QQQ ) gained 1.7% and the Dow Jones Industrial Average ( DIA ) rallied 531-points.

Following declines of 0.7% yesterday, the broad-based Equity REIT ETF ( VNQ ) finished higher by 0.2% today with 10 of 18 property sectors in positive territory. The Mortgage REIT ETF ( REM ) gained 0.3% following yesterday's 0.9% decline. Equity markets have been whipsawed in recent weeks from the on-again-off-again status of stimulus negotiations. As discussed yesterday, while more stimulus will certainly be appreciated by equity markets and by the Federal Reserve, strong economic data over the last several ...